Latent Causal Socioeconomic Health Index
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This research develops a model-based LAtent Causal Socioeconomic Health (LACSH) index at the national level. We build upon the latent health factor index (LHFI) approach that has been used to assess the unobservable ecological/ecosystem health. This framework integratively models the relationship between metrics, the latent health, and the covariates that drive the notion of health. In this paper, the LHFI structure is integrated with spatial modeling and statistical causal modeling, so as to evaluate the impact of a continuous policy variable (mandatory maternity leave days and government's expenditure on healthcare, respectively) on a nation's socioeconomic health, while formally accounting for spatial dependency among the nations. A novel visualization technique for evaluating covariate balance is also introduced for the case of a continuous policy (treatment) variable. We apply our LACSH model to countries around the world using data on various metrics and potential covariates pertaining to different aspects of societal health. The approach is structured in a Bayesian hierarchical framework and results are obtained by Markov chain Monte Carlo techniques.
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