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The Living Arrangement Dynamics of Sick, Elderly Individuals

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  • Benoit Dostie

    ()

  • Pierre Thomas Léger

    ()

Abstract

In this paper, we address the dynamics associated with living-arrangement decisions of sick, elderly individuals. Using data from the Panel Study of Income Dynamics and its Parental Health Supplement, we construct the complete living-arrangement histories of elderly individuals in need of care. We use a simultaneous random-effects competing-risks model to analyze the impact of demographic characteristics, health and wealth on the living-arrangement decisions of sick elderly individuals while taking into account state and duration dependence as well as unobserved heterogeneity. We find that state and duration dependence serve as important predictors for the living arrangement choices of sick elderly individuals. Dans cet article, nous étudions la dynamique des choix d'habitation des personnes âgées en manque d'autonomie. En utilisant les données provenant du Panel Study of Income Dyamics et de son Parental Health Supplement, nous sommes en mesure de reconstruire l'historique complet des choix d'habitation de ces individus. La méthodologie utilisée pour tenir compte de l'impact des caractéristiques démographiques, de l'état de la santé et de la situation financière des personnes âgées sur leur choix d'habitation consiste en une série de modèles de risques concurrents à effets aléatoires simultanés. Cette méthodologie permet aussi de tenir compte de la dépendance à la durée et à l'état ainsi que de l'hétérogénéité non-observée. Nous trouvons que ces derniers phénomènes sont très importants pour prédire le mode d'habitation choisi par ce segment de la population.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2004s-03.

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Date of creation: 01 Jan 2004
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Handle: RePEc:cir:cirwor:2004s-03

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Keywords: Living arrangement dynamics; competing risks; markov models; unobserved heterogeneity; aging; Dynamique des choix d'habitation; risques concurrents; modèle markovien; hétérogénéité non-observée; vieillissement des populations;

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References

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  1. Laurence J. Kotlikoff & John Morris, 1988. "Why Don't the Elderly Live With Their Children? A New Look," NBER Working Papers 2734, National Bureau of Economic Research, Inc.
  2. Axel Borsch-Supan & Laurence J. Kotlikoff & John N. Morris, 1988. "The Dynamics of Living Arrangements of the Elderly," NBER Working Papers 2787, National Bureau of Economic Research, Inc.
  3. Alan M. Garber & Thomas E. MaCurdy, 1990. "Predicting Nursing Home Utilization among the High-Risk Elderly," NBER Chapters, in: Issues in the Economics of Aging, pages 173-204 National Bureau of Economic Research, Inc.
  4. Axel Borsch-Supan & Jagadeesh Gokhale & Laurence J. Kotlikoff & John N. Morris, 1992. "The Provision of Time to the Elderly by Their Children," NBER Chapters, in: Topics in the Economics of Aging, pages 109-134 National Bureau of Economic Research, Inc.
  5. Florian Heiss & Michael Hurd & Axel Borsch-Supan, 2003. "Healthy, Wealthy, and Knowing Where to Live: Predicted Trajectories of Health, Wealth and Living Arrangements Among the Oldest Old," NBER Working Papers 9897, National Bureau of Economic Research, Inc.
  6. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
  7. Maxim Engers & Steven Stern, 2002. "Long-Term Care and Family Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 73-114, February.
  8. Hiedemann, Bridget & Stern, Steven, 1999. "Strategic play among family members when making long-term care decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 40(1), pages 29-57, September.
  9. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
  10. Mealli, Fabrizia & Pudney, Stephen, 1996. "Occupational Pensions and Job Mobility in Britain: Estimation of a Random-Effects Competing Risks Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(3), pages 293-320, May-June.
  11. Steven Stern, 1995. "Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 551-580.
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Cited by:
  1. M. Lippi Bruni & C. Ugolini, 2013. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Working Papers wp905, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2007. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," CESifo Economic Studies, CESifo, vol. 53(1), pages 69-96, March.
  3. Michelle Sovinsky & Steven Stern, 2013. "Dynamic modelling of long-term care decisions," ECON - Working Papers 113, Department of Economics - University of Zurich.
  4. Meliyanni Johar & Shiko Maruyama, 2012. "Externality and Strategic Interaction in the Location Choice of Siblings under Altruism toward Parents," Discussion Papers 2012-15, School of Economics, The University of New South Wales.
  5. Shiko Maruyama & Meliyanni Johar, 2013. "Do Siblings Free-Ride in "Being There" for Parents?," Discussion Papers 2013-06, School of Economics, The University of New South Wales.
  6. Michaud, Pierre-Carl & Heitmueller, Axel & Nazarov, Zafar, 2010. "A dynamic analysis of informal care and employment in England," Labour Economics, Elsevier, vol. 17(3), pages 455-465, June.
  7. Lippi Bruni Matteo & Ugolini Cristina, 2006. "Assistenza a domicilio e assistenza residenziale: politiche di intervento e analisi empirica," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-268.
  8. Meliyanni Johar & Shiko Maruyama, 2011. "Intergenerational cohabitation in modern Indonesia: filial support and dependence," Health Economics, John Wiley & Sons, Ltd., vol. 20(S1), pages 87-104, 09.

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