Econometrics (12 pts) Table 2 below shows the impact of a declining fertility ra

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Econometrics (12 pts) Table 2 below shows the impact of a declining fertility rate (births per 100 population) on rates of birth by Casearean section. The economist estimated a logistic regression model 8. where the dependent variable (Y) equals one for delivery by Caesarean section, O 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. The results are shown in Column 1. Column 2 adds controls for wealth (income per capita) and the local unemployment rate. The table reports coefficient estimates, and standard errors in parentheses. Table 2 Determinants of Caesarean Section -0.024 (0.006) 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) 0.005 (0.002) -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 (0.010) 0.055 (0.061) 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 Black Hispanic Other Married High school graduate College graduate Higher than college Education missing Real average income per capita Unemployment rate What happens to the rate of Caesarean sections as the fertility rate declines? Explain how you know 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 Black mothers more or less likely to have a Caesarean delivery than White mothers (the omitted group)? What about Hispanic mothers relative to White mothers? Explain how you know. 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? a. b. c. d.

Explanation / Answer

a.) As the regression coefficient of fertility rate is negative (= -0.024), the rate of Caesarean section decreases, i.e., for reduction in fertility rate by 1 birth/100, rate of Caesarean section goes down by 2.4%

b.) As mother's age increases, the likelihood of C-Section increases, as the regression coefficients are positive and increasing for increasing age category of mothers.

c.) Black mothers are more likely to have a C-section as compared to White mothers (regression coefficient 0.015 > 0). Also, Hispanic mothers are more likely than white mothers to have a C-section (regression coeffcient = 0.0001 >0)

d.) As the regression coefficient for Real average income per capita(0.020) is > 0, women who come from an area with high per capita income are more likely to give birth by a C-Section.

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