Valuing First Nation Land Claims and Other Historical Damages

摘要

First Nation land claims have become increasingly common In recent years. These claims involve determining the present value of the deficiency payment and/or the cumulative loss of use value of these lands. This article identifies a bias that results when the present value of these long-lived claims Is determined by compounding a sequence of long-term yields over lengthy periods. A laddered, bond portfolio approach is proposed to overcome this bias. The article also proposes a novel procedure for estimating the cumulative loss of use value and net annual rental rate on land that should have been set aside as reserve land.