Determining the value of non-market work, especially household production, as a component of economic damages

• Author: Stanley P. Stephenson/David A. Macpherson
• Pages: 175-190

NON-MARKET WORK

6-1

CHAPTER 6

DETERMINING THE VALUE OF

NONMARKET WORK, ESPECIALLY

HOUSEHOLD PRODUCTION, AS A

COMPONENT OF ECONOMIC DAMAGES

§600 PURPOSE AND SCOPE

§601 What Is Non-Market Work?

§602 An Example

§603 The Six Steps to Valuing Non-Market Activities

§610 STEP 1: WHICH MEASUREMENT METHOD?

§611 Replacement Cost/Specialist Cost Method

§612 Market/Opportunity Cost Method

§613 Housekeeper Method

§614 Survey of Economists on Methods Used

§620 STEP 2: WHICH ACTIVITIES AND HOW MUCH TIME?

§621 Activities Included in Household Production

§622 Surveying the Plaintiff or Survivors

§623 American Time Use Survey (ATUS) and Dollar Value of a Day (DVD)

§624 Dollar Value of a Day Tables

Table 6-1 Married Men, Employed Full-Time, Spouse Employed, All Ages,

Youngest Child Ages 13 through 17 (DVD, 2018, Table 16)

§625 Care, Companionship, and Other Household Activities

§630 STEP 3: HOW TO VALUE NONMARKET WORK ACTIVITIES?

§640 STEP 4: HOW TO UPDATE HOUSEHOLD PRODUCTION VALUES

§641 Adjustment for Demographics

§642 Adjustment for Wage Rates

§650 STEPS 1 THROUGH 4, A RECAP

§660 STEP 5: LENGTH OF LOSS PERIOD AND DECLINING HEALTH

§661 Adjustment for Declining Health

NON-MARKET WORK

Determining Economic Damages 6-2

§670 STEP 6: ADJUSTMENTS FOR CHILDREN AND SELFCONSUMPTION

§671 Adjustments for Self-Consumption

§680 SAMPLE COMPUTATION AND CROSSEXAMINATION QUESTIONS

§681 Sample Computation

§682 Suggested Cross Examination Questions

§690 CONCLUSION