TY  - RPRT
        AU  - Oswald, Andrew J.
AU  - Powdthavee, Nattavudh
        TI  - Death, Happiness, and the Calculation of Compensatory Damages
        PY  - 2007/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3159
        UR  - https://www.iza.org/publications/dp3159
        AB  - This paper studies the mental distress caused by bereavement. The largest emotional losses are from the death of a spouse; the second-worst in severity are the losses from the death of a child; the third-worst is the death of a parent. The paper explores how happiness regression equations might be used in tort cases to calculate compensatory damages for emotional harm and pain-and-suffering. We examine alternative well-being variables, discuss adaptation, consider the possibility that bereavement affects someone’s marginal utility of income, and suggest a procedure for correcting for the endogeneity of income. Although the paper’s contribution is methodological, and further research is needed, some illustrative compensation amounts are discussed.
        KW  - well-being
KW  - GHQ scores
KW  - compensation
KW  - happiness
KW  - damages
KW  - bereavement
        ER  -