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What is Chow-Test

Chapter 7
Applied Econometric Analysis: Emerging Research and Opportunities
An econometric test used to determine if there is a structural break in a dataset.
Published in Chapter:
Socioeconomic Influences on Fertility Rate Fluctuations in Developed and Developing Economies
Kayla M. Good (Indiana University of Pennsylvania, USA) and Anthony M. Maticic Jr. (Indiana University of Pennsylvania, USA)
Copyright: © 2020 |Pages: 23
DOI: 10.4018/978-1-7998-1093-3.ch007
Abstract
This study investigates what socioeconomic factors determine the varying fertility rates among developed and developing nations and the implications of this information. Social and economic variables are analyzed using a panel of 20 nations with annual data from 1991-2015 to determine the most sizable and significant variables that impact fertility rates. A one-way fixed effects model is utilized. This study includes an aggregate model as well as two models isolating the fertility rates of developed nations and of developing nations, in accordance with Chow-Test results. The results find that there is a divergence between the determinants of fertility rates, based upon the development level. It is clear from these results that fertility and population control issues are specific to the state of a nation's development; thus, blanket policies will not fully address the issue of excessive population growth.
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