Inflation and the Present Value of Future Economic Damages

The extent to which damage awards realistically reflect the plaintiff's future loss or expense depends largely on the discounting method employed and on the economic variables different methods incorporate and emphasize. The authors present a method for accurately assessing the present value of future economic damages and explore the dynamics of accounting for economic factors. In explaining and comparing other damages formulae popularly used by the courts, the authors conclude that their recommended approach produces the fairest possible result.