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Thursday, July 8, 2010

Death Elasticity

"Academic researchers have known for years that death rates are influenced by major changes in estate-tax law. A 2003 paper published in the prestigious Review of Economics and Statistics looked at 13 major estate-tax changes in teh US - following the creation of the tax in 1916 - and found they had a small but statistically significant effect on death rates. Among those wealthy enough to be affected by the changes, the chance of dying increased slightly in the two weeks before rates went up and decreased in the two weeks after an estate-tax cut, a phenomenon the authors have dubbed death elasticity."

Death or Taxes
by Adam Fisher
http://www.time.com/time/magazine/article/0,9171,1999426,00.html

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