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Testing economic hypotheses with state-level data: a comment on Donohue and Levitt (2001)

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Christopher L. Foote
Christopher F. Goetz

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Abstract

State-level data are often used in the empirical research of both macroeconomists and microeconomists. Using data that follows states over time allows economists to hold constant a host of potentially confounding factors that might contaminate an assignment of cause and effect. A good example is a fascinating paper by Donohue and Levitt (2001, henceforth DL), which purports to show that hypothetical individuals resulting from aborted fetuses, had they been born and developed into youths, would have been more likely to commit crimes than youths resulting from fetuses carried to term. We revisit that paper, showing that the actual implementation of DL’s statistical test in their paper differed from what was described. (Specifically, controls for state-year effects were left out of their regression model.) We show that when DL’s key test is run as described and augmented with state-level population data, evidence for higher per capita criminal propensities among the youths who would have developed, had they not been aborted as fetuses, vanishes. Two lessons for empirical researchers are, first, that controls may impact results in ways that are hard to predict, and second, that these controls are probably not powerful enough to compensate for the omission of a key variable in the regression model. (Data and programs to support this comment are available on the web site of the Federal Reserve Bank of Boston.)

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Paper provided by Federal Reserve Bank of Boston in its series Working Papers with number 05-15.

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Date of creation: 2005
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Handle: RePEc:fip:fedbwp:05-15

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Keywords: Research ; Economics ; Crime;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ted Joyce, 2001. "Did Legalized Abortion Lower Crime?," NBER Working Papers 8319, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Robert Shimer, 2001. "The Impact Of Young Workers On The Aggregate Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 969-1007, August. [Downloadable!] (restricted)
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  3. Ted Joyce, 2004. "Did Legalized Abortion Lower Crime?," Journal of Human Resources, University of Wisconsin Press, vol. 39(1). [Downloadable!] (restricted)
  4. John J. Donohue & Steven D. Levitt, 2001. "The Impact Of Legalized Abortion On Crime," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 379-420, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Elizabeth Oltmans Ananat & Daniel M. Hungerman, 2007. "The Power of the Pill for the Next Generation," NBER Working Papers 13402, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Elizabeth Oltmans Ananat & Jonathan Gruber & Phillip B. Levine & Douglas Staiger, 2006. "Abortion and Selection," NBER Working Papers 12150, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Theodore J. Joyce, 2006. "Further Tests of Abortion and Crime: A Response to Donohue and Levitt (2001,2004, 2006)," NBER Working Papers 12607, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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