Author Ronnie Barnes introduces some basic concepts from econometrics and statistical analysis, and provides examples of how these might be used in an international arbitration damages assessment.
Used correctly and presented clearly, econometric analysis—the application of statistical techniques to economic data—has a potentially important role to play in the robust and reliable estimation of damages. Despite this, international arbitration practitioners often point to its highly technical nature, and cite it as a source of confusion.
In this chapter, author Ronnie Barnes attempts to strip away much of the unnecessary complexity related to econometric analysis. Dr Barnes asserts there are some fundamental elements of econometric analysis—in particular, regression analysis—that practitioners should feel comfortable with.
The chapter aims to inform lawyers, both counsel and arbitrators, about how to better understand expert reports that may contain econometric analysis.
The chapter was published by Global Arbitration Review in The Guide to Damages in International Arbitration, Fourth Edition in November 2020.
The views expressed herein do not necessarily represent the views of Cornerstone Research.
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