TEA.5.4

Description

While the forensic economic literature is replete with scholarly articles exploring and discussing the appropriate discount rate for compensatory damages, it fails to discuss with any specificity the methodological distinctions between 1) discounting for present value and 2) discounting for asset valuation. Moreover, the literature fails to identify other economic constructs necessary for the determination of the appropriate discount rates, whether discounting for present value or asset valuation. While the referenced distinctions seem to be confused by the literature, if not ignored, it is critical that they be nonetheless explored. The identification of such distinctions and constructs is necessary to the analysis and will eliminate the ambiguity, confusion, and even bias, which ultimately leads to a cavalier analytical discounting approach that either under or excessively compensates the Plaintiff.