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HW 6 Solution

# HW 6 Solution - Econ 132 Fall 2007 ASSIGNMENT 6 SOLUTIONS...

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Econ 132 Fall 2007 ASSIGNMENT 6: SOLUTIONS Cameron 1.(a) It increases. By visual inspection of the first graph. Health%GDP rises as GDP rises. In fact from the estimated regression, a \$10,000 increase in per capita GDP is associated with a 2.56 percentage points increase in Health%GDP. (b) U.S. infant mortality is higher than that in other countries. By visual inspection of the second graph infant mortality generally decreases as Health \$ increases, which leaves the U.S. as an outlier at the far right, above any regression line. (c) U.S. life expectancy is lower than that in other countries after controlling for Health \$. . By visual inspection of the third graph life expectancy generally rises Health \$ increases, which leaves the U.S. as an outlier below any regression line. 2.(a) Because obesity is a more recent problem, really beginning around 1980. (b) 59% as 36% are overweight and 23% are obese. (c) The data are on number of hospital stays and ambulatory visits. These are converted to dollars by multiplying by estimates of costs based on another data set (MEPS).

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HW 6 Solution - Econ 132 Fall 2007 ASSIGNMENT 6 SOLUTIONS...

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