Description
In this paper, we review the economic foundations for earnings and discounting procedures used in forensic economics. The purpose of this unified presentation of generally accepted economic principles is to (a) provide documentation for the common economic conclusions derived by forensic economists, and (b) advance the appreciation and acceptance of the science of forensic economics. The format of the presentation is that the economic concept or principle is stated. The statement is followed by the commonly accepted economic theory that supports the principle. A brief discussion of the implications follows the theoretical presentation. Following the conclusion is a comprehensive list of references to the published literature that support the economic theories contained within the paper.
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