Oswald, Andrew J. and Powdthavee, Nattavudh (2007) Death, happiness and the calculation of compensatory damages. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).

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Abstract

This paper studies the mental distress caused by bereavement. The largest emotional losses are from the death of a spouse; the second-worst in severity are the losses from the death of a child; the third-worst is the death of a parent. The paper explores how happiness regression equations might be used in tort cases to calculate compensatory damages for emotional harm and pain-and-suffering. We examine alternative well-being variables, discuss adaptation, consider the possibility that bereavement affects someone’s marginal utility of income, and suggest a procedure for correcting for the endogeneity of income. Although the paper’s contribution is methodological, and further research is needed, some illustrative compensation amounts are discussed.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Bereavement -- Psychological aspects, Happiness, Regression analysis -- Mathematical models, Reparation (Criminal justice), Marginal utility
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	31 October 2007
Number:	No.827
Number of Pages:	44
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Funder:	Economic and Social Research Council (Great Britain) (ESRC)
Version or Related Resource:	Oswald, A.J., and Powdthavee, N. (2008). Death, Happiness, and the Calculation of Compensatory Damages. The Journal of Legal Studies, 37(2), pp. S217-S251. http://wrap.warwick.ac.uk/id/eprint/28759
Related URLs:	Related item in WRAP
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URI:	http://wrap.warwick.ac.uk/id/eprint/1389

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