Econometric Issues Associated with Regression of Education on Health (Essay Sample)

Economics
Health Economics
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Health Economics
What are the econometric issues associated with the above regression of education on health?
Why is the estimated effect, likely to be biased?
Using education as a variable that has a direct effect the health of an individual. The next issue is the use of gamma with known predictors of health. In this equation, the use of gamma as a cofactor of the vector of established health predictions does not guarantee as for specific results. The random error term does not have a specification in this equation.
The estimated effect in this equation is the level of education of an individual. It is likely to cause biases because it purports that people with higher level of learning have improved health status compared to the persons with the lowered level of education.
Briefly outline three techniques researchers have used to overcome the issues mentioned in part a. critically assess each of the three.
There are three techniques to address bias in the equation above. The first technique is the determination of a comparable variable in the equation. The next method is the difference-in-difference which determines the variable that would make the difference. Regression discontinuity design technique which compares the effect of the equation. The determination technique is essential to identify the unknown predic