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Modelling opportunity in health under partial observability of circumstances

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  • Pedro Rosa Dias

    (Centre for Health Economics, The University of York, UK)

Abstract

This paper proposes a behavioural model of inequality of opportunity in health that integrates John Roemer's framework of inequality of opportunity with the Grossman model of health capital and demand for health. The model generates a recursive system of equations for health and lifestyles, which is then jointly estimated by full information maximum likelihood with freely correlated error terms. The analysis innovates by accounting for the presence of unobserved heterogeneity, therefore addressing the partial-circumstance problem, and by extending the examination of inequality of opportunity to health outcomes other than self-assessed health, such as long-standing illness, disability and mental health. The results provide evidence for the existence of third factors that simultaneously influence health outcomes and lifestyle choices, supporting the empirical relevance of the partial-circumstance problem. Accounting for these factors, the paper corroborates that the effect of parental and early circumstances on adult health disparities is paramount. However, the particular set of circumstances that affect each of the analysed health outcomes differs substantially. The results also show that differences in educational opportunities, and in social development in childhood, are crucial determinants of lifestyles in adulthood, which, in turn, shape the observed health inequalities. Copyright © 2010 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1584
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 19 (2010)
Issue (Month): 3 ()
Pages: 252-264

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Handle: RePEc:wly:hlthec:v:19:y:2010:i:3:p:252-264

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References

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Citations

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Cited by:
  1. Trannoy, Alain & Tubeuf, Sandy & Jusot, Florence, 2010. "Effort or Circumstances : Which one matters in health inequality ?," Economics Papers from University Paris Dauphine 123456789/9524, Paris Dauphine University.
  2. Sun, Jiawei & Ma, Chao & Song, Ze & Gu, Hai, 2013. "Inequality of Opportunity in Health Care in China: Suggestion on the Construction of the Urban-Rural Integrated Medical Insurance System," MPRA Paper 49389, University Library of Munich, Germany.
  3. Tubeuf, Sandy & Trannoy, Alain & Jusot, Florence & Bricard, Damien, 2013. "Inequalities of Opportunities in Health and Natural Reward: a European Perspective," Economics Papers from University Paris Dauphine 123456789/11716, Paris Dauphine University.
  4. Florence Jusot & Sabine Mage & Marta Menendez, 2014. "Inequality of Opportunity in Health in Indonesia," Working Papers DT/2014/06, DIAL (Développement, Institutions et Mondialisation).
  5. Florence Jusot & Sandy Tubeuf & Alain Trannoy, 2013. "Circumstances And Efforts: How Important Is Their Correlation For The Measurement Of Inequality Of Opportunity In Health?," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1470-1495, December.
  6. Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2014. "Normative foundations for equity-sensitive population health evaluation functions," COHERE Working Paper 2014:1, COHERE - Centre of Health Economics Research, University of Southern Denmark.
  7. Jusot, Florence & Bricard, Damien, 2012. "Intergenerational transmission of health care habits in France," Economics Papers from University Paris Dauphine 123456789/10720, Paris Dauphine University.
  8. Christine le Clainche & Sandy Tubeuf, 2013. "Nannying, nudging, rewarding? A discussion on the constraints and the degree of control over health status," Working Papers 1306, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
  9. Ovrum, Arnstein & Rickertsen, Kyrre, 2011. "Inequality in Health Versus Inequality in Lifestyles," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114556, European Association of Agricultural Economists.
  10. Petrolia, Daniel R. & Hwang, Joonghyun & Landry, Craig E. & Coble, Keith H., 2013. "Wind Insurance and Mitigation in the Coastal Zone," Working Papers 160462, Mississippi State University, Department of Agricultural Economics.
  11. Li Donni, P; & Peragine, V; & Pignataro G;, 2011. "Measuring equity in health: a normative decomposition," Health, Econometrics and Data Group (HEDG) Working Papers 11/06, HEDG, c/o Department of Economics, University of York.

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