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Simulation-based Inference in Dynamic Panel Probit Models: an Application to Health

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  • Paul Contoyannis
  • Andrew M. Jones
  • Nigel Rice

Abstract

This paper considers the determinants of a binary indicator for the existence of functional limitations using seven waves (1991-1997) of the British Household Panel Survey(BHPS). The focal point of our analysis is a consideration of the relative contributions of state dependence, heterogeneity and serial correlation in expanding the dynamics of health. To investigate these issues we apply static and dynamic panel probit models with flexible error structures. To estimate the models we show strong positive state dependence, with the effect for men around 150% of the effect for women.

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File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2002-12.pdf
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Bibliographic Info

Paper provided by McMaster University in its series Department of Economics Working Papers with number 2002-12.

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Length: 38 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:mcm:deptwp:2002-12

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