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Dying to Save Taxes: Evidence from Estate-Tax Returns on the Death Elasticity

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  • Wojciech Kopczuk

    (University of British Columbia)

  • Joel Slemrod

    (University of Michigan)

Abstract

This paper examines data from U.S. federal tax returns to shed light on whether the timing of death is responsive to its tax consequences. We investigate the temporal pattern of deaths around the time of changes in 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 have uncovered is ex post doctoring of the reported date of death. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Wojciech Kopczuk & Joel Slemrod, 2003. "Dying to Save Taxes: Evidence from Estate-Tax Returns on the Death Elasticity," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 256-265, May.
    • Handle: RePEc:tpr:restat:v:85:y:2003:i:2:p:256-265
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    References listed on IDEAS

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    1. William G. Gale & Joel B. Slemrod, 2001. "Rethinking the Estate and Gift Tax: Overview," NBER Working Papers 8205, National Bureau of Economic Research, Inc.
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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