Duo Cum Faciunt Idem, Non Est Idem - Evidence from Austrian Pain and Suffering Verdicts

22 Pages Posted: 13 Jan 2012

See all articles by Magdalena Flatscher-Thöni

Magdalena Flatscher-Thöni

UMIT, Department of Public Health and Health Technology Assessment

Andrea M. Leiter

Faculty of Economics and Statistics, University of Innsbruck

Hannes Winner

University of Salzburg - Department of Economics and Social Sciences; Austrian Institute of Economic Research (WIFO); University of Oxford - Oxford University Centre for Business Taxation; University of Innsbruck - Department of Economics & Statistics

Date Written: January 12, 2012

Abstract

We analyze the pricing of pain and suffering and, in particular, whether the corresponding compensations are affected by a court’s approach to value such damages. For this purpose, we use data on pain and suffering verdicts in Austria, where courts are generally free to choose between a.per diem and a lump sum scheme to assess payments on damages for pain.and suffering. We find significant higher payments under the lump sum regime, which are not vanishing even after controlling for individual- and injury-specific characteristics. Our evidence suggests that the observed difference between lump sum and per diem schemes mainly appears if the victims are female and exposed to multiple injuries and, to a lesser extent, to intensive past pain days.

Keywords: tort law, pain and suffering, per diem calculation scheme, lump sum calculation scheme

JEL Classification: K13, K41

Suggested Citation

Flatscher-Thöni, Magdalena and Leiter, Andrea M. and Winner, Hannes, Duo Cum Faciunt Idem, Non Est Idem - Evidence from Austrian Pain and Suffering Verdicts (January 12, 2012). Available at SSRN: https://ssrn.com/abstract=1983895 or http://dx.doi.org/10.2139/ssrn.1983895

Magdalena Flatscher-Thöni (Contact Author)

UMIT, Department of Public Health and Health Technology Assessment ( email )

EWZ 1
Hall, Tyrol 6060
Austria

Andrea M. Leiter

Faculty of Economics and Statistics, University of Innsbruck ( email )

Universitätsstraße 15
Innsbruck, Innsbruck 6020
Austria

Hannes Winner

University of Salzburg - Department of Economics and Social Sciences ( email )

Residenzplatz9
Salzburg, 5010
Austria

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

University of Oxford - Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

University of Innsbruck - Department of Economics & Statistics ( email )

Universitatsstrasse 15
Innsbruck, A-6020
Austria

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