Journal of Forensic Economics
The practice of forensic economics has a long history of trying to identify the correct interest rate to use when valuing economic losses in personal injury and wrongful death cases. We trace the legal history as it relates to the appropriate interest rates and adjustments for inflation. We then discuss the use of Treasury Inflation Protected Securities, TIPS, and an analysis of the combined effect of realized inflation and taxes on the effective return. We come to the unexpected conclusion that the use of TIPS does not lend itself to a simple adjustment to the rate for taxes nor eliminate the need to consider expected inflation.
Original Publication Citation
Strangways, R., Rubin, B. L., & Zugelder, M. (2014). Using TIPS to discount to present value. Journal of Forensic Economics, 25(1), 71-89. doi:10.5085/jfe.25.1.71
Strangways, Raymond; Rubin, Bruce L.; and Zugelder, Michael, "Using TIPS to Discount to Present Value" (2014). Finance Faculty Publications. 9.