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Care‐giver advice as a preventive measure for drinking during pregnancy: zeros, categorical outcome responses, and endogeneity

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  • Joseph V. Terza
  • Donald S. Kenkel
  • Tsui‐Fang Lin
  • Shinichi Sakata

Abstract

We conduct an empirical investigation of the impact of prenatal care‐giver advice on alcohol consumption by pregnant women. In the design of the model and estimator, we pay particular attention to three aspects of the data. First, a large proportion of pregnant women do not drink at all. To accommodate this aspect of the sample we base the essential formulation of the model on the modified version of the two‐part approach of Duan et al. (Journal of Business and Economic Statistics 1983; 1: 115–126.) suggested by Mullahy (Journal of Health Economics 1998; 17: 247–281.). Second, in the survey that we analyze (the 1988 National Maternal and Infant Health Survey – NMIHS), respondents were only required to report their consumption up to a specified range of values (e.g. 1–2 drinks per week, 2–5 drinks per week, and so on). For this reason, the model is cast in the grouped regression framework of Stewart (Review of Economic Studies 1983; 50: 141–149.). Third, the binary physician advice variable is likely to be endogenous and the econometric specification explicitly accounts for this possibility. To summarize the results, we find that failing to account for endogeneity leads to the counterintuitive conclusion that advice has a positive and statistically significant influence on drinking during pregnancy. When the model is extended to allow for potential endogeneity, we find that advice has a negative and statistically significant impact. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Joseph V. Terza & Donald S. Kenkel & Tsui‐Fang Lin & Shinichi Sakata, 2008. "Care‐giver advice as a preventive measure for drinking during pregnancy: zeros, categorical outcome responses, and endogeneity," Health Economics, John Wiley & Sons, Ltd., vol. 17(1), pages 41-54, January.
    • Handle: RePEc:wly:hlthec:v:17:y:2008:i:1:p:41-54
    DOI: 10.1002/hec.1232
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    References listed on IDEAS

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    1. John Mullahy, 1998. "Much Ado About Two: Reconsidering Retransformation and the Two-Part Model in Health Economics," NBER Technical Working Papers 0228, National Bureau of Economic Research, Inc.
    2. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
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    4. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 737-753.
    5. Viscusi, W Kip, 1990. "Do Smokers Underestimate Risks?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1253-1269, December.
    6. Donald S. Kenkel & Joseph V. Terza, 2001. "The effect of physician advice on alcohol consumption: count regression with an endogenous treatment effect," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(2), pages 165-184.
    7. Duan, Naihua, et al, 1983. "A Comparison of Alternative Models for the Demand for Medical Care," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(2), pages 115-126, April.
    8. Mullahy, John, 1998. "Much ado about two: reconsidering retransformation and the two-part model in health econometrics," Journal of Health Economics, Elsevier, vol. 17(3), pages 247-281, June.
    9. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
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    5. Liebert, H. & Mäder, B., 2016. "Marginal effects of physician coverage on infant and disease mortality," Health, Econometrics and Data Group (HEDG) Working Papers 16/17, HEDG, c/o Department of Economics, University of York.
    6. Liebert, Helge & Mäder, Beatrice, 2016. "The impact of regional health care coverage on infant mortality and disease incidence," Economics Working Paper Series 1620, University of St. Gallen, School of Economics and Political Science.
    7. Bratti, M. & Miranda, A, 2010. "Endogenous Treatment Effects for Count Data Models with Sample Selection or Endogenous Participation," Health, Econometrics and Data Group (HEDG) Working Papers 10/19, HEDG, c/o Department of Economics, University of York.
    8. Helge Liebert & Beatrice Mäder, 2022. "Physicians and the Production of Health: Returns to Health Care During the Mortality Transition," CESifo Working Paper Series 9699, CESifo.
    9. Giulia Bettin & Riccardo Lucchetti, 2012. "Interval regression models with endogenous explanatory variables," Empirical Economics, Springer, vol. 43(2), pages 475-498, October.
    10. Monica Puoma LAMBON-QUAYEFIO & Nkechi S. OWOO, 2021. "Investigating the Long-Term Effects of Child Labor on Household Poverty and Food Insecurity in Ghana," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 87(4), pages 561-587, December.

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