Ringler Radio

Forensic Economics: Part Two

 

In the second edition of this two-part series on Forensic Economics, we take a look at a cost of illness study (COI) in comparison to a life care plan often used in plaintiff cases. Ringler Radio host, Larry Cohen welcomes John E. Scarbrough, Ph.D., President of Litigation Analytics Inc., who has over 25 years experience analyzing economic loss in cases involving personal injury and wrongful death. Larry and John examine real life cases and look at what happens when overstating cost of illness and explore how Medicare set-asides new rules could affect these life care plans.

  • http://www.spectrumeconomics.com Christopher C. Pflaum, PhD

    Dr. Scarborough is simply wrong in his critique of economics in the courtroom. Many, though not all, of us who work in the field sometimes called “Forensic Economics” use textbook economics in our work. Furthermore, many of us, unlike Dr. Scarborough, research topics that are at issue in litigation and publish that research.

    Dr. Scarborough is not unique in using good economics nor is he a prominant scholar in the field.

  • http://www.spectrumeconomics.com Christopher C. Pflaum, PhD

    Scarborough is doing battle with a straw man in his discussion of Life Care Plans. First, most life care plans are produced in association with an expert or treating physician. Second, the standard of care in a life care plan is higher than the average annual cost of treating a condition as the average is a composite of degrees of quality. Third, unlike suggested by Scarborough, most economists quantifying a life care plan use a rated life expectancy unique to the plaintiff and opined upon by a physician or statistician specializing in the field of life expectancy.

    Scarborough is widely known for his critiques of forensic economics, as am I. He is not credible, however, because he critiques a parody not the professional reality. There are certainly many economists prostituting themselves for plaintiffs who market themselves to plaintiff attorney groups heralding their “new economic theories” and how they increase damages. Then, there is Dr. Scarborough.

    Two sides of the same coin?