Document 4V9anZ1a9bGBR1wYQewz9MMV

Page 1284 1 that apply economic principles to social and political j 2 issues. j 3 Q A moment ago you mentioned the term forensic ; 4 economics. ! 5 Can you just briefly expand on that? j 6 A Sure. Well, one of the things that we ; 7 develop in economic theory is a set of principles 8 about how decisions get made, how things in society 9 get valued. And when we are dealing with cases like ' 10 personal injury or wrongful death, we take those ! 11 principles and we try to estimate what the losses that j 12 are alleged to have occurred as a result of the , 13 alleged injury. j 14 So forensic economics is the application of 15 economic principles to estimating damages in legal and 16 civil proceedings or the application of economic j 17 principles to the design or policy such as in terms of 18 telephone rate design, insurance rate regulation. 19 So we develop theoretical tools, statistical 20 tools, methodological principles, and we seek to use 21 those to help understand, measure, and predict i