Saturday, May 24, 2014

The Change in Bankruptcy Rates: Unexpected Relationships with Life Expectancy and Infant Mortality

Rotated Factor Matrixa

1  (52% of Variance)
2 (21% of Variance)
Infant Mortality 2007 Deaths/1000
Life Expectancy
% Low Birthweight Babies
Groups per million

% change in bankruptcy

Percent Uninsured in Demographic Group for All Income Levels

Percent under age 65 in 200% of Poverty
Extraction Method: Principal Axis Factoring.
 Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 3 iterations.

I've added the change in bankruptcy rates to the factor analysis for health and hate groups.  I had to remove income from the analysis so the model would converge.  The factor structure did not change radically otherwise.  The % change in bankruptcy loaded weakly and negatively on the factor with health outcomes and hate groups.  Of all the factors entered, life expectancy correlated most strongly with the % change in bankruptcy followed by infant mortality. 

The graph for life expectancy suggests a positive relationship with the change in bankruptcy.  The increased change in bankruptcy could be due to more permissive laws in granting bankruptcy protection from creditors as can be seen in the video below.  These states may tend to have better quality of life characteristics than those who do not.  For example, Hawaii had the highest life expectancy and an increase in bankruptcies of 129% (and zero hate groups).  As can be seen in the above graph, this relationship is far from perfect accounting for only 15.2% of the variability,

There is also a significant negative correlation with infant mortality and change in bankruptcy accounting for 13.4% of the variance.  The District of Columbia is an outlier with a rate of 13.1 deaths per 1,000 live births but an increase of 26% of bankruptcies (DC also has the highest rate of hate groups)/  Removing DC gives a slightly stronger relationship with 14.9% of the variability accounted.

**Related Posts**

A Wave of Hate Groups in California? No in Washington, DC


How do the States Stack Up on Infant Mortality? (Cross Post with PUSH)


Correlation with the Number of Hate Groups per Million, Poor Health Suggests More Hate

Personal and Medical Bankruptcies: A Follow Up


Income and Life Expectancy. What does it Tell Us About US?