[OPE-L:7830] RE: IGnobel Economics Prize

From: Nicola Taylor (19518173@student.murdoch.edu.au)
Date: Wed Oct 16 2002 - 22:46:51 EDT

WONDERFUL!  I will give this to my first year Micro students when I
review do elasticity next week


> The 2001 IGnobel Economics Prize Winner
> Every year at Harvard, an IGnobel prize awarded to a preposterous
> published by an academic. Last years' award winner in economics was
> following: Joel Slemrod, of the University of Michigan Business
> and
> Wojciech Kopczuk, of University of British Columbia, for their
> that people find a way to postpone their deaths if that that would
> them for a lower rate on the inheritance tax. [REFERENCE:"Dying to
> Taxes: Evidence from Estate Tax Returns on the Death Elasticity,"
> Bureau of Economic Research Working Paper No. W8158, March 2001.].
> believe me? Check out the link <http://papers.nber.org/papers/W8158>
> Abstract:
> This paper examines data from U.S. federal tax returns to shed light
> whether the timing of death is responsive to its tax consequences. We
> investigate the temporal pattern of deaths around the time of changes
> the
> estate tax system periods when living longer, or dying sooner, could
> significantly affect estate tax liability. We find some evidence that
> there
> is a small death elasticity, although we cannot rule out that what we
> uncovered is ex post doctoring of the reported date of death. However,
> fact that we find that postponement, rather than acceleration, of
death is
> more likely to occur suggests that this phenomenon is at last partly a
> real
> (albeit timing) response to taxation.

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