Forensic economics is the scientific discipline that applies economic theories and methods to matters within a legal framework.
Forensic economics covers, but is not limited to:
- the calculation of pecuniary damages in personal and commercial litigation,
- the analysis of liability, such as the statistical analysis of discrimination, the analysis of market power in antitrust disputes, and fraud detection, and
- other matters subject to legal review, such as public policy analysis, and business, property, and asset valuation. [Definition adopted by National Association of Forensic Economics Board of Directors, 7/21/2013]
A graduate degree in economics is the usual baseline qualification of forensic economists. Other persons who provide economic damages related testimony include persons with graduate degrees in business / finance / accounting, financial analysis, and vocational rehabilitation specialists.
A forensic economist is essential for computing the value of loss of income, household services, etc. over a lifetime. This expert will assist in determining life expectancy, wage growth, applicable interest rates, and the cost of care into the future.