Why you think that standard logit or probit model sufficient


Problem

In his article, "Instrumental-Variable Estimation of Count Data Models: Applications to Models of Cigarette Smoking Behavior", Review of Economics and Statistics (1997, pp. 586-93). John Muliahy wanted to find out if a mothers smoking during pregnancy adversely affected her babys birth weight. To answer this question he considered several variables, such as natural log of birth weight, gender (1 if the baby is male), parity (number of children the woman has borne), the number of cigarettes the mother smoked during pregnancy, family income, fathers education, and mothers education. The raw data can be found on the website of Michael Murray. Download this data set and develop your own model of the effect of mothers smoking during pregnancy on the babys birth weight and compare your results with those of John Mtdlahy. State your reasons why you think that a standard logit or probit model is sufficient without resorting to IV estimation.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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