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Birth Outcome Production Functions in the U.S

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  • Hope Corman
  • Theodore J. Joyce
  • Michael Grossman

Abstract

This paper contains the first infant health production functions that simultaneously consider the effects of a variety of inputs on race-specific neonatal mortality rates. These inputs include the use of prenatal care, neonatal intensive care, abortion, Federally subsidized organized family planning clinics, maternal and infant care projects, community health centers, and the WIC program. The empirical analysis is based on a cross section of U.S. counties in 1977, and the incidence of low birth weight (2,500 grams or less) is employed as an intermediate outcome. This allows us to examine the extent to which prenatal inputs operate directly on neonatal mortality and also allows us to examine their indirect effects on mortality rates through low birth weight. Since mothers with poor endowed birth outcomes will attempt to offset these unfavorable prospects by utilizing more health inputs, major emphasis is placed on two-stage least squares estimatesof the production function. Our results underscore the qualitative and quantitative importance of abortion, prenatal care, neonatal intensive care,and the WIC program in black and white birth outcomes.

Suggested Citation

  • Hope Corman & Theodore J. Joyce & Michael Grossman, 1985. "Birth Outcome Production Functions in the U.S," NBER Working Papers 1729, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:1729
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    1. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-750, July.
    2. Michael Grossman & Steven Jacobowitz, 1981. "Variations in infant mortality rates among counties of the United States: The roles of public policies and programs," Demography, Springer;Population Association of America (PAA), vol. 18(4), pages 695-713, November.
    3. Rosenzweig, Mark R & Schultz, T Paul, 1983. "Consumer Demand and Household Production: The Relationship between Fertility and Child Mortality," American Economic Review, American Economic Association, vol. 73(2), pages 38-42, May.
    4. Lewit, Eugene M. & Coate, Douglas, 1982. "The potential for using excise taxes to reduce smoking," Journal of Health Economics, Elsevier, vol. 1(2), pages 121-145, August.
    5. Mark R. Rosenzweig & T. Paul Schultz, 1982. "The Behavior of Mothers as Inputs to Child Health: The Determinants of Birth Weight, Gestation, and Rate of Fetal Growth," NBER Chapters,in: Economic Aspects of Health, pages 53-92 National Bureau of Economic Research, Inc.
    6. Michael Grossman & Steven Jacobowitz, 1981. "Variations in Infant Mortality Rates among Counties in the United States: The Roles of Social Policies and Programs," NBER Working Papers 0615, National Bureau of Economic Research, Inc.
    7. Corman, Hope & Grossman, Michael, 1985. "Determinants of neonatal mortality rates in the U.S. : A reduced form model," Journal of Health Economics, Elsevier, vol. 4(3), pages 213-236, September.
    8. Nakamura, Alice & Nakamura, Masao, 1981. "On the Relationships among Several Specification Error Tests Presented by Durbin, Wu, and Hausman," Econometrica, Econometric Society, vol. 49(6), pages 1583-1588, November.
    9. Fred Goldman & Michael Grossman, 1988. "The Impact of Public Health Policy: The Case of Community Health Centers," Eastern Economic Journal, Eastern Economic Association, vol. 14(1), pages 63-72, Jan-Mar.
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