Econ 550 homework - what are the differences between


Homework -

Problem 1 - Pritchett and Summer argue that income per capita is strongly and positively related to health status when viewed across the world. From Date in Table 2-2 (textbook, page 23), plot a graph of GDP per capita against life expectancy for the countries shown. Does your plot confirm the Pritchett and Summer finding?

Problem 2 - The relationship between income per capita and health status has been the object of research contradictions. We know that correlation indicates the possibility of a cause-effect relationship, but it does not prove causation (see problem 1).  Regression analysis is a better tool to assess the strength of a relationship. From data in Table 2-2, (textbook, page 23), assess the strength of this relationship by regressing life expectancy (life expectancy is used as a proxy of health status, the dependent variable) on GDP per capita (the predictor or independent variable). Is the linear relationship statistically significant? Please provide the ANOVA table and interpret your findings.

Problem 3 - What are the differences between mortality and morbidity? Would you expect the two variables to be related to each other? If so, how?

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