Question

8. Econometrics (15 pts) Table 2 below shows the impact of a declining fertility rate (births per 100 population) on rates of birth by Cesarean section. The economist estimated a logistic regression model where the dependent variable (Y) equals one for delivery by Cesarean section, 0 for a normal delivery Independent variables in the model include year fixed effects (e), county fixed effects (a), and a vector (X) that controls for mother's age, education, marital status, race and ethnicity, as well as income per capita and the unemployment rate in the local area. The table reports coefficient estimates, and standard errors in parentheses Table 2 Determinants of Cesarean Section Births per 100 population in county Mother's age 20-24 years Mother's age 25-29 years Mother's age 30-34 years Mother's age 35-39 years Mother's age 40+ years -0.026 (0.007) 0.030 (0.001 0.067 (0.001) 0.099 (0.001) 0.140 (0.002) 0.183 (0.004) 0.015 (0.002) 0.0001 (0.004) -0.020 (0.003) 0.0003 (0.001) 0.022 (0.002) 0.024 (0.002) 0.005 (0.002) 0.006 0.002) 0.020 Identify which coefficient estimates are significant a. b. What happens to the rate of Cesarean sections as the fertility rate declines? Explain how you know All else equal, are Black mothers more or less likely to have a Caesarean delivery than White mothers (the omitted group)? c. Black Hispanic Other Married High school graduate College graduate Higher than college Education missing Real average income per capita Unemployment rate d. How does the likelihood of a Caesarean section vary with the mother's age? Explain your answer. (Hint! All age coefficients are relative to mothers age 19 and under - the omitted age category.) All else equal, are women more likely to give birth by Caesarean section if they come from an area with high or low per capita income? How might you explain this result, in terms of a model we have discussed in class? (Hint! It is typically a physiciarn who decides whether to deliver a baby by Cesarean section e. 0.055 0.061) 4

Answer 1

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