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David Harrington, "Breathing Life into the Funeral Market," Regulation, The Cato Institute, Spring 2003 (cato.org/pubs/regulation)
Do Americans spend too much money to bury loved ones? Kenyon College professor David Harrington thinks so: He believes that state laws requiring licensing and other regulations in the funeral market drive up the cost of burials to no good effect. In particular, he believes that cremation rates may shed some light on the effects of regulation.
A study Harrington conducted shows that people are more likely to choose less costly cremation over burial in states where there is less regulation of the funeral market. In 1990, consumers were 15 percent more likely to opt for cremation in relatively unregulated states than in more heavily regulated ones. This suggests that in highly regulated markets, where funeral directors enjoy less competition, "directors may induce demand by steering consumers away from cremations," which are less expensive than traditional burials.
The study also found that cremation rates decline in regions where there are fewer deaths, ...