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Extra resources for Econometrics: Legal, Practical and Technical Issues
Effect of all of these sources of being represented by an additional variable, the error modeling error as term, in the multiple regression model. An important assumption in multiple regression analysis is that the error term and each of the explanatory variables are independent of each other. If the error term and an explanatory variable are independent, they are not correlated with each other. To the extent this is true, the expert can estimate the parameters of the model without bias; the magnitude of the elror term will affect the precision with which a model parameter is estimated, but will not causie that estimate to be consistently too high or too low.
The parties should be encouraged to resolve differences as to the appropriateness and precision of the data to the extent possible by informal conference before trial. F. Conclusion Notwithstanding imperfect data and the potential for a lack of in the model and dat4 econometrics is an increasingly utilized tool. The subsequent chapters in this Handbook explain how econometrics is being applied so that econometrics may become more transparent and accessible to legal practitioners. i Ll A- lntroduction This chapter explores some of the evidentiary issues raised by the use of econometric studies in litigation.
1987-1 Trade Cas. (ccH) n67,476,at59,992 (D. Colo. 1987) (utilizing econometric models to prove fact of injury and amount of certain antitust damages). 28,2001). 21. Id 22. See Estate of Bud Hill,1997 23. Id. 24. Id. 2s. 26. 27. Id. Id. Id. S. Dist. LEXS, at *15-16. Sept. 2e lhe testimony "does not lend itself to verification . . 3l b. Analysis Has Been Published or Subjected to Peer Review Review by other enonomists adds to a methodology's reliability. The court in Sanner credited part of the expert's testimony because his "theories and methodologies have been the subject of at least three books .