Introduction Several economic types of research have demonstrated that there is a strong positive correlation between years of schooling and health. However, the main question centered in this study is the relationship that exists between education and Health (Buckles, et al.2013). This paper will employ several changes that have been made in education and health studies to test the hypothesis that there is a causal relationship between education and health. Results from this study suggest that there is a causal relation ranging from more schooling to better health, which is more significant than the standards regression suggestions Description Public intellectuals and policymakers usually emphasize the essence of education. They argue that education results in expanded job opportunities and higher expected earnings. However, there may be other essential benefits of education, which have not been understood appropriately. Recent economic literature reviews on the effects of education on the health of a population found out that there is substantial evidence that links education not only to increase earning potential of an individual but also to reduce criminal behavior. This is also related to increased voting as well as democratic participation and improved health outcomes. Given the fact that education is a crucial multifaceted component that affects health; the research composed in this paper has education and health policy makers, as its targets audiences due to the multiple causative relationships between the two variables. The ability of policymakers and the governments to understand the Education- Health relationship would help them whenever deciding on whether to invest more in education or healthcare. . Literature Review With the current empirical economics, hypotheses usually go either way, depending on the economist’s perspective. One might assume that better education leads to better health or better health lead to a better education. Or maybe the fact that education brings more income thus betters health; versus better health helping individuals become more educated. But one thing that we could all agree on is the fact that education correlates with health. Education is one of the major social factors that most economic researchers have cited that is linked to longer lifespans in every country where it has been studied. For example; according to the CDC: for every 100,000 deaths amongst non-high school graduate American males aged between 25 to 64 years old, the mortality rate was 655.2; for the males within the same age group but with high-school diplomas, the mortality rate is 600.9. Whereas; the mortality rate for those with college education or higher given the same parameters was 238.9(Martinek, 2017). Such results are a pure reflection of the fact that the more educated people are, the more likely they are better informed thus making better health choices. Alternatively, health in young adulthood and childhood years may .

1. Introduction
Several economic types of research have demonstrated that
there is a strong positive correlation between years of schooling
and health. However, the main question centered in this study is
the relationship that exists between education and Health
(Buckles, et al.2013). This paper will employ several changes
that have been made in education and health studies to test the
hypothesis that there is a causal relationship between education
and health. Results from this study suggest that there is a causal
relation ranging from more schooling to better health, which is
more significant than the standards regression suggestions
Description
Public intellectuals and policymakers usually emphasize the
essence of education. They argue that education results in
expanded job opportunities and higher expected earnings.
However, there may be other essential benefits of education,
which have not been understood appropriately. Recent economic
literature reviews on the effects of education on the health of a
population found out that there is substantial evidence that links
education not only to increase earning potential of an individual
but also to reduce criminal behavior. This is also related to
increased voting as well as democratic participation and
improved health outcomes. Given the fact that education is a
crucial multifaceted component that affects health; the research
composed in this paper has education and health policy makers,
as its targets audiences due to the multiple causative
relationships between the two variables. The ability of
policymakers and the governments to understand the Education-
Health relationship would help them whenever deciding on
whether to invest more in education or healthcare.
.
Literature Review

2. With the current empirical economics, hypotheses usually go
either way, depending on the economist’s perspective. One
might assume that better education leads to better health or
better health lead to a better education. Or maybe the fact that
education brings more income thus betters health; versus better
health helping individuals become more educated. But one thing
that we could all agree on is the fact that education correlates
with health. Education is one of the major social factors that
most economic researchers have cited that is linked to longer
lifespans in every country where it has been studied. For
example; according to the CDC: for every 100,000 deaths
amongst non-high school graduate American males aged
between 25 to 64 years old, the mortality rate was 655.2; for the
males within the same age group but with high-school diplomas,
the mortality rate is 600.9. Whereas; the mortality rate for those
with college education or higher given the same parameters was
238.9(Martinek, 2017). Such results are a pure reflection of the
fact that the more educated people are, the more likely they are
better informed thus making better health choices.
Alternatively, health in young adulthood and childhood years
may affect the ability of an individual to receive an education.
Educational attainment affects income as well as other aspects
of people’s lives, which facilitate access to medical and
preventive care. Individuals that are more educated can practice
safer behaviors such as deciding not to smoke, often using a
seatbelt, take vaccinations, and even exercising regularly more
often than an individual that is less educated.
Despite the existence of an empirical relationship between the
two constraints, it has been hard to establish the existence of a
causal relationship between health and education. This is
because of the dual causality issue. The underlying rapport can
be rooted from the concept of the disputation that education
brings more income, which in return allows better access to
better healthcare. But the difference in the income levels only
accounts for 20% of the effect that advanced education has on
health behaviors (Martinek, 2017).

3. Additionally, other unseen variables i.e. individual-level
behaviors such as patience that make a person to more likely
invest in both education and in the long-term health may
contribute to the enhanced relationship between education and
health. It is therefore hard to find out what way the causation
goes and the mechanisms that encourage these effects. Most of
the hard empirical analysis addresses the issue of causality
emphasis on compulsory educational law changes that were
made in 1960. It's for this reason that I’m testing of the
hypothesis that education has a crucial social effect on health.
While in search of supporting evidence, we will comb through
similar studies that have tried to detect causal effects with
robust assessment techniques.
Data
Large scale demographic and improvement studies likewise
recognize a critical positive relationship between extending
mass education and the health of people. However, numerous
other studies particularly the most punctual ones, did not
control different health components such as monetary
advancement that may be connected to better health. As an
outcome, it is constantly recommended that the relationship
between extending education and population health is
unauthentic due to the effect of general social improvement that
includes financial development and the nature of human
services. Subsequently, related variables of innovation are
frequently expected to prepare for both mass education and
more health population. While holding other variables constant;
except mortality rate, we could proof the effect of education on
health using the data from the National Longitudinal Mortality
Study (NLMS), where one more year of education increases life
expectancy by 0.18 years; with the discount rate at 3% or 0.6 of
a year while disregarding the discount: If we were to assume
that each health year is worth conservatively at $75000; This
would directly translates into about $13,500 - $44,000 in
present value. With such rough estimates we clearly see that the
health returns to education upsurge the total returns to

4. education by at least 15% on the lower end and 55 on the upper
end.
Works Cited
Martinek, C. (2017, 12 5). Which Came First-Better Education
or Better Health? Retrieved 12 15, 2017, from Which Came
First: Better Education or Better Health? | St. Louis Fed:
http://www.stlouisfed.org/publications/re/articles/?id=2092
Buckles, Kasey, Andreas Hagemann, Ofer Malamud, Melinda
S. Morrill, and Abigail K.
Wozniak. 2013. “The Effect of College Education on Health.”
Working Paper 19222.
Goesling, B. (2007). “The Rising Significance of Education for
Health?” Social Forces 85 (4):
1621–44.
Grossman, M. 2015. “The Relationship between Health and
Schooling: What’s New?”
Working Paper 21609. National Bureau of Economic Research.
http://www.nber.org/papers/w21609.
Institute of Education Sciences. 2015. “Digest of Education
Statistics, 2013.” Accessed
http://nces.ed.gov/programs/digest/d13/tables/dt13_303.40.asp.
Lleras-Muney, A. (2006). “The Relationship between Education
and Adult Mortality in the
United States: Erratum.” Review of Economic Studies 73 (3):
847–847.
doi:http://restud.oxfordjournals.org/content/by/year.
ECO 625: Milestone Two Guidelines and Rubric
Overview: The final project for this course is designed to guide
you through the process of applying the key components of

5. econometrics. In the previous
econometrics course (ECO 620), you practiced using regression
analysis, which is useful but has some serious limitations and is
not appropriate in many settings.
As an economist, you will often be asked to analyze data that
has serious nonlinearity or is not normally distributed, and you
must be able to rise to this
challenge. In order to practice the skills involved, you will
create a final project in which you will prepare an econometric
analysis of a business, policy, or
economic issue of your choice, utilizing advanced methods
studied in this course (forecasting, nonparametric analysis,
maximum likelihood, and so on).
You should choose a topic of personal or professional interest
to you. You may revisit the topic you selected in ECO 620 or
choose a new topic. A literature review
of peer-reviewed publications will be necessary in order to
familiarize yourself with possible ways to address the issue
empirically, using advanced econometric
methods. You will build an empirical model to analyze the issue
and use the data to conduct econometric analysis. You will then
explain your findings to both
technical and nontechnical audiences.
Prompt: Submit a two- to three-page paper that addresses the
following questions: What are the quantitative implications and
actionable insights of the chosen
business, policy, or economic issue? Also, what is the benefit of
using advanced econometric techniques relative to simpler ones,
such as regression?
Specifically, the following critical elements must be addressed:

6. I. Data
A. What limitations could your data impose on the choice of
empirical method? What are the effects of these limitations?
II. Empirical Approach
A. What empirical method(s) do you propose and why? Why is
this method most appropriate and preferable to simpler models,
such as regression?
B. What are the limitations of your proposed empirical method?
What are possible alternative advanced methods that can be
used? Be sure to
address causes for these limitations, such as problems with the
data or with interactions between variables.
C. What is your model specification? What functional form of
data do you use and why?
III. Results and Robustness
A. What are your preliminary results from baseline estimations
in the statistical software? What is their relationship with the
original hypothesis
and research question? Is there a difference between the
baseline estimation and the ultimate choice of the model?
Discuss.
B. Which violations of the chosen model’s assumptions do you
anticipate? Which diagnostic tests do you employ to check for
presence of
violations of model assumptions?
C. What are your secondary results from your test run through
the statistical software? Interpret these test results and

7. determine the presence or
absence of problems.
D. Are your results affected by the corrections? Are they
affected in a significant way (e.g., change of sign of
coefficients or change in statistical
significance)?
Rubric
Guidelines for Submission: Your submission should be two to
three pages in length (not including title page and references)
and should use double spacing,
12-point Times New Roman font, one-inch margins, and
citations in APA format.
Critical Elements Exemplary (100%) Proficient (90%) Needs
Improvement (70%) Not Evident (0%) Value
Data: Limitations Meets “Proficient” criteria and
supports discussion with
scholarly research
Identifies limitations of the data
structure on the choice of
empirical methods and details
the effects of these limitations
Identifies limitations of the data
structure on the choice of

8. empirical methods but does not
detail the effects of these
limitations, or discussion misses
key limitations
Does not identify limitations of
the data structure on the choice
of empirical methods
10
Empirical Approach:
Method
Meets “Proficient” criteria and
explains the reasons for the
superiority of the chosen
method(s) over other methods
Proposes advanced empirical
method(s) to use in the study
and clearly defends method(s),
stating the considerations
leading to the choice, including
why simpler models were not
employed
Proposes advanced empirical
method(s) to use in the study
and defends these method(s)
but does not address
considerations leading to the
choice, or defense of proposed
methods is lacking in detail
Does not propose and defend

9. advanced empirical method(s)
to use in the study
10
Empirical Approach:
Limitations
Meets “Proficient” criteria and
supports discussion with
scholarly research
Identifies limitations of the
proposed model, delineating
between issues with the data
and interactions between
variables, and addresses the
appropriateness of alternative
methods/models
Identifies limitations of the
proposed model but does not
delineate between issues with
the data and interactions
between variables or does not
address the appropriateness of
alternative methods/models
Does not identify limitations of
the proposed model
10
Empirical Approach:
Specification

10. Meets “Proficient” criteria, and
justification is supported
through research
Outlines the empirical approach
in a clear manner, providing
specifications in the form of an
equation and justifying the
transformation
Outlines the empirical approach
but does not provide
specifications in the form of an
equation or does not justify the
transformation
Does not outline the empirical
approach
10
Results and
Robustness:
Preliminary Results
Meets “Proficient” criteria and
discusses any counterintuition in
the results or possible
inconsistencies
Utilizes statistical software to
produce an initial report of

11. results, details those results, and
determines the relationship of
the results to the hypothesis and
research question, disclosing
differences in baseline
estimation and ultimate choice
of model
Utilizes statistical software to
produce an initial report of
results but does not present
those results beyond simple
statements of fact or does not
determine the relationship of
the results to the hypothesis and
research question
Does not utilize statistical
software to produce an initial
report of results
15
Results and
Robustness:
Violations
Meets “Proficient” criteria, and
examination addresses the
effects that identified ordinary
least squares violations would
have on results
Identifies violations and chooses
appropriate statistical tests
based on initial examination of

12. results
Identifies violations but does not
choose appropriate statistical
tests to run or employ a
complete battery of tests
Misinterprets results of the tests
or uses inappropriate tests
15
Results and
Robustness:
Secondary Results
Meets “Proficient” criteria, and
interpretation is highly specific
and detailed
Conducts, interprets, and
reports results from secondary
tests correctly and determines
the presence or absence of
problem(s)
Conducts and reports results
from secondary tests, but
interpretation of test results is
limited/incorrect, or the
presence/absence of problem(s)
is not determined
Does not conduct or report
results from secondary tests

13. 15
Results and
Robustness: Affected
Meets “Proficient” criteria and
provides illustrative examples of
impact of changes on overall
conclusions
Determines the effects of
corrective actions by noting
changes (or lack thereof) and
the magnitude in coefficients of
these changes in statistical
significance of key independent
variables
Determines the effects of
corrective actions but does not
note changes (or lack thereof) or
does not note the magnitude in
coefficients of these changes in
statistical significance of key
independent variables, or the
determination of effects is
flawed
Does not determine the effects
of corrective actions
10
Articulation of
Response

14. Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy to read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
5
Earned Total 100%