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State funeral regulations: inside the black box

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  • Jerry Ellig

Abstract

This study estimates the effects of state regulations affecting funeral markets. It accounts for multiple major categories of regulations and demand inducement as well as direct price effects. While concurring with prior studies that find ready-to-embalm regulations increase funeral costs and decrease the percentage of cremations, this study finds that several other state regulations are associated with significantly higher receipts per death. The regulation with the largest apparent effect on average funeral costs is the direct disposition license, which is associated with a $1250 reduction in receipts per death. Restrictive regulations affect the revenues of funeral homes and services to a much greater extent than they affect the revenues of cemeteries and crematories, and in some cases the regulations even increase funeral homes and services’ share of industry revenues. Thus, it appears that funeral homes receive most of the benefits of regulation. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Jerry Ellig, 2015. "State funeral regulations: inside the black box," Journal of Regulatory Economics, Springer, vol. 48(1), pages 97-123, August.
    • Handle: RePEc:kap:regeco:v:48:y:2015:i:1:p:97-123
    DOI: 10.1007/s11149-015-9280-4
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    References listed on IDEAS

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    1. Judith A. Chevalier & Fiona M. Scott Morton, 2008. "State Casket Sales Restrictions: A Pointless Undertaking?," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 1-23, February.
    2. Harrington, David E & Krynski, Kathy J, 2002. "The Effect of State Funeral Regulations on Cremations Rates: Testing for Demand Inducement in Funeral Markets," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 199-225, April.
    3. Daniel Sutter, 2005. "State Regulations and E-Commerce: The Case for Internet Casket Sales in Oklahoma," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 20(Spring 20), pages 27-42.
    4. David E. Harrington, 2007. "Markets: Preserving Funeral Markets with Ready-to-Embalm Laws," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 201-216, Fall.
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    Citations

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    Cited by:

    1. Daniel J. Smith & Noah J. Trudeau, 2019. "The Undertaker’s Cut: Challenging the Rational Basis for Casket Licensure," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 34(Summer 20), pages 23-41.
    2. Dick M. Carpenter & Lisa Knepper & Kyle Sweetland & Jennifer McDonald, 2018. "The Continuing Burden of Occupational Licensing in the United States," Economic Affairs, Wiley Blackwell, vol. 38(3), pages 380-405, October.
    3. David E. Harrington & Jaret Treber, 2020. "Constraining Competition With State Mandated Facility Requirements," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 659-674, October.
    4. Harrington, David, 2018. "Constraining Rivals: The Effect of State-Mandated Facility Requirements on the Locations and Sizes of Funeral Homes," Working Papers 06958, George Mason University, Mercatus Center.

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    More about this item

    Keywords

    Funeral; Regulation; Funeral regulation; Funeral director; Cemetery; Occupational licensing; Death care; K23; L51; L84; L88; H73;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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