Author: Yating Gong (Ph.D.)

Publisher:

Published: 2024

Total Pages: 0

ISBN-13:

Technology and policies serve as two effective tools for enhancing human production and well-being over time. Technological advancements contribute to increasing productivity and enrich the material consumption of individuals. Governments utilize policies aimed at influencing human behavior to improve social welfare surplus. Understanding the impacts of technology and policies on various aspects of human society empowers policymakers and individuals to make informed decisions. Through studying these effects, policymakers and individuals can develop strategies to maximize benefits and mitigate negative consequences. In the three chapters of my dissertation, I investigated genetic improvements in dairy breeding animals and productivity growth in Wisconsin dairy farms. I explored the long-term effects of in utero cigarette tax exposure on adult health. Finally, I examined the long-term health and behavioral effects of early childhood exposure to childcare subsidy programs. In the first chapter, I examine the relationship between investments in animal breeding and productivity growth on Wisconsin dairy farms using a control function approach. I incorporate farm-level annual investment in breeding and genetics into the law of motion of productivity as in De Loecker (2013) to test the relationship between these investments and realized productivity. Our unique dataset also allows us to look at the effect of choosing bulls with high milk yield potential on productivity. Our results indicate that breeding investments made three years prior are associated with higher productivity of the current cohort. However, the farms with the highest level of productivity reap the lowest benefits from breeding investments, suggesting that there are diminishing returns to investing in genetics. When milk output is not quality-adjusted, the contribution of breeding to productivity is undetectable, suggesting that breeding and investments in milk quality are related. I conclude that investments in breeding and genetics significantly contribute to dairy farm productivity, especially in terms of milk quality. In the second chapter, I explore the long-term effect of in-utero cigarette tax exposure. Cigarette taxes have been shown to reduce maternal smoking and enhance birth outcomes. However, it is still uncertain whether these effects persist into adulthood. This study investigates the effects on adult health outcomes of exposure to higher cigarette taxes while in utero. Utilizing a generalized difference-in-difference methodology and analyzing a rich dataset spanning births from 1968 to 1994, I find that a 10-cent higher cigarette tax while individuals were in utero leads to a significant 1.8 percentage point reduction in the likelihood that the treated individuals (evaluated at ages 25 to 35) ever experienced health conditions such as asthma, lung disease, heart disease, or heart attacks. The examination of mechanisms underscores pathways through parental smoking behavior during pregnancy, birth outcomes, childhood health, smoking behavior in adolescence and adulthood, cognitive ability, educational attainment, and age of first childbirth for treated individuals. The study contributes to the burgeoning literature on early-life determinants of health and enriches our understanding of the complex interplay between cigarette policies and long-term health, with implications for policymakers and public health interventions. In the third chapter, I investigate the health impacts of early-life exposure to Child and Dependent Care Tax Credits (CDCTC). This research leverages variation in state generosity regarding the CDCTC to explore how the accumulated exposure in the first four years of life affects children's health. I suggest that the CDCTC may influence child health through both income and substitution effects, as it boosts household income and encourages the substitution of parental childcare with purchased child care services. Our findings reveal intriguing patterns: children born to mothers with less than high school education reap benefits from CDCTC exposure, whereas those born to mothers with more than high school education experience poorer health outcomes. This discrepancy is attributed to the lower quality of purchased child care services compared to the higher quality of maternal childcare provided by highly educated mothers. The findings from our research on Child and Dependent Care Tax Credits have direct policy relevance. They challenge conventional wisdom on the utility of such subsidies, providing policymakers with nuanced insights that can inform future reforms.