A letter that saved lives

//A letter that saved lives

A letter that saved lives

The New York Times: The I.R.S. Sent a Letter to 3.9 Million People. It Saved Some of Their Lives.

Article published: Dec 10, 2019

IB Economics syllabus: microeconomics (government intervention, nudge economics)

While this article is not suitable for an IB economics IA (partly because it’s too long, and partly due to the topic it covers), it is still a great one as it serves as real-life evidence of the usefulness of nudging (and the field of behavioral economics). In particular, it is about a research paper in which the authors (quite proudly) state that their “results provide the first experimental evidence that health insurance reduces mortality.” In short, it shows how sending letters to people (3.9 million of them) who lacked health insurance coverage can lead to increased coverage and more importantly, reduced mortality (that is, less people dying).

Source of image: Jonathan Ernst/Reuters

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By | 2019-12-30T15:13:53+00:00 December 30th, 2019|Micro|Comments Off on A letter that saved lives

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 8 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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