Using data on (N=4,642) infant births, we estimate a probit model with dependent variable (L B W

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Using data on \(N=4,642\) infant births, we estimate a probit model with dependent variable \(L B W E I G H T=1\) if it is a low birthweight baby and 0 otherwise, MAGE is the mother's age, PRENATAL1 \(=1\) if first prenatal visit is in 1 trimester and 0 otherwise, and MBSMOKE \(=1\) if the mother smoked and 0 otherwise. The results are in Table 16.10.

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a. In Model 1, comment on estimated signs and significance of the coefficients on PRENATAL1 and MBSMOKE.

b. Using Model 1, calculate the marginal effect on the probability of a low birthweight baby given an increase in the mother's age by 1 year, for a woman who is 20 years old with PRENATAL1 \(=0\) and \(M B S M O K E=0\). Repeat this calculation for a woman who is 50 years old. Do the results make sense?

c. Using Model 2, calculate the marginal effect on the probability of a low birthweight baby given an increase in the mother's age by 1 year, for a woman who is 20 years old with PRENATAL1 \(=0\) and \(M B S M O K E=0\). Repeat this calculation for a woman who is 50 years old. Compare these results to those in part (b).

d. Using Model 2, calculate the impact of a prenatal visit in the first trimester on the probability of having a low birthweight baby for a woman who is 30 years old and smokes.

e. Using Model 2, calculate the impact of a mother smoking on the probability having a low birthweight baby given that she is 30 years old and had a prenatal visit in the first trimester.

f. Using Model 2, calculate the age at which the probability of a low birthweight baby is a minimum.

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Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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