Abstract
This thesis examines the relationship between infant mortality and several variables that have been shown to affect it especially health spending. The study is based on state level U.S. data between the years 1991 and 2004. This thesis is unique in its examination by using the U.S. statistics. Previous research on the topic found that health spending levels have either lowered the infant mortality rate or has had no statistical significance. After controlling for state and time fixed effects as well as possible endogeneity issues, this thesis found similar results for both outcomes. Other variables in the regression also played a roll in the infant mortality rate and their following results are also consistent with previous research. Higher levels of education and income were shown to lower infant mortality rates. Higher total fertility rates, alcohol and cigarette consumption were shown to increase infant mortality rates. Conservative political policies were also found to lower infant mortality, although this relationship is not entirely clear.