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Estimating the effect of smoking on birth outcomes using a matched panel data approach

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  • Jason Abrevaya

    (Department of Economics, Purdue University, West Lafayette, IN 47907-2056, USA)

Abstract

Estimating the casual effect of smoking on birth outcomes is difficult since omitted (unobserved) variables are likely to be correlated with a mother's decision to smoke. While some previous work has dealt with this endogeneity problem by using instrumental variables, this paper instead attempts to estimate the smoking effect from panel data (i.e., data on mothers with multiple births). Panel data sets are constructed with matching algorithms applied to federal natality data. The fixed effects regressions, which control for individual heterogeneity, yield significantly different results from ordinary least squares and previous instrumental variable approaches. The potential inconsistency caused by 'false matches' and other violations of the fixed effects strict exogeneity assumption are considered. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Jason Abrevaya, 2006. "Estimating the effect of smoking on birth outcomes using a matched panel data approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(4), pages 489-519.
  • Handle: RePEc:jae:japmet:v:21:y:2006:i:4:p:489-519
    DOI: 10.1002/jae.851
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    File URL: http://qed.econ.queensu.ca:80/jae/2006-v21.4/
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    References listed on IDEAS

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    1. Reichman, Nancy E. & Florio, Maryanne J., 1996. "The effects of enriched prenatal care services on Medicaid birth outcomes in New Jersey," Journal of Health Economics, Elsevier, vol. 15(4), pages 455-476, August.
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    3. Colman, Greg & Grossman, Michael & Joyce, Ted, 2003. "The effect of cigarette excise taxes on smoking before, during and after pregnancy," Journal of Health Economics, Elsevier, vol. 22(6), pages 1053-1072, November.
    4. Joyce, Theodore, 1999. "Impact of augmented prenatal care on birth outcomes of Medicaid recipients in New York City," Journal of Health Economics, Elsevier, vol. 18(1), pages 31-67, January.
    5. Rosemary Hyson & Janet Currie, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," American Economic Review, American Economic Association, vol. 89(2), pages 245-250, May.
    6. Corman, Hope & Chaikind, Stephen, 1998. "The effect of low birthweight on the school performance and behavior of school-aged children," Economics of Education Review, Elsevier, vol. 17(3), pages 307-316, June.
    7. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
    8. Evans, William N. & Lien, Diana S., 2005. "The benefits of prenatal care: evidence from the PAT bus strike," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 207-239.
    9. Levinson, Arik & Ullman, Frank, 1998. "Medicaid managed care and infant health," Journal of Health Economics, Elsevier, vol. 17(3), pages 351-368, June.
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