Statistical analysis of fertility through simultaneous equation model in Haryana

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Date
2008
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CCSHAU
Abstract
In today’s scenario to know the fertility pattern is very important as the population is rising rapidly. It is important to use appropriate statistical techniques for their estimation. Single-equation model of fertility behaviour are subject to specification error and often fail to capture the dynamic properties of the model. But the variable considered have two–way causation, thus Simultaneous Equation Model should be used. An attempt has been made by postulating the four equations simultaneous equation model for explaining the fertility pattern in Haryana. This model consists of Fertility Equation, Female Participation Equation, Income Equation and Education equation. Identification was done for examining the efficient method of estimation. All four equations were found to be over–identified. After identification two–stage least squares method of estimation was used for the estimation of regression coefficients. Estimates were compared for OLS as well as for 2SLS in terms of regression coefficient estimates, standard error of estimates, coefficient of multiple determination (R2) and Durbin–Watson test statistic value. Residual analysis was also performed to find out outliers and for establishing the presence of autocorrelation. There was no outlier while indication found for the presence of outliers. By Durbin–Watson statistic it was found that there was no autocorrelation between the successive terms of the residuals of four different endogenous variables. The data of Haryana State for 42 years was splitted into three parts viz. 1966-2007, 1966-1986 and 1987-2007 for examining the time patterns in fertility. Then estimates obtained through OLS method has been compared for three different time periods and also the estimates obtained through 2SLS method has been compared for three different time periods. Then the comparison was made between the estimates obtained through OLS and 2SLS for different time periods. It has been found that infant mortality rate, female literacy rate, female work participation rate has statistically high significant effect on fertility. On comparison, it was found that 2SLS method gives consistent and efficient estimates of regression coefficients as compared to OLS method.
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Keywords
Fertilizers, Manpower, Participation, Economics, Biological phenomena, Marketing, Land resources, Byproducts, Sexual reproduction, Sampling
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