hw8 - Let I equal income in thousands(so the average I for...

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HPAM8600: Health Economics UGA College of Public Health Professor Angela Fertig Spring 2010 Homework 8 Due Wednesday, April 21, 2010 1. Suppose that income, I, is the only variable that affects health outcomes. The equations for the health status, H, of black and white men are given by: H w = 500 + 100 I H b = 300 + 75 I On average, whites have $50,000 in income and blacks have $40,000 in income.
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Unformatted text preview: Let I equal income in thousands (so the average I for whites is 50 and the average I for blacks is 40). (a) What is the black-white health differential? (b) Using the Oaxaca-Blinder decomposition, calculate how much of this health differential is due to discrimination....
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This note was uploaded on 01/18/2012 for the course HPAM 8600 taught by Professor Ferig during the Spring '11 term at UGA.

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