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

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Author Info
Paul Contoyannis
Andrew M. Jones
Nigel Rice

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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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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
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Handle: RePEc:mcm:deptwp:2002-12

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Find related papers by JEL classification:
I10 - Health, Education, and Welfare - - Health - - - General
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General

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  1. Andrew M. Jones & Ángel López, 2003. "Measurement and Explanation of Socioeconomic Inequality in Health with Longitudinal Data," Working Papers, Research Center on Health and Economics 711, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  2. Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2004. "The dynamics of health in the British Household Panel Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 473-503. [Downloadable!]
  3. Biewen, Martin, 2004. "Measuring State Dependence in Individual Poverty Status: Are There Feedback Effects to Employment Decisions and Household Composition?," IZA Discussion Papers 1138, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Paul Contoyannis & Andrew M. Jones & Roberto Leon-Gonzalez, 2004. "Using simulation-based inference with panel data in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 101-122. [Downloadable!]
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  5. Timothy J Halliday, 2005. "Heterogeneity, State Dependence and Health," Working Papers 200503, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
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  6. Bo E. Honoré & Elie Tamer, 2002. "Bounds on Parameters in Dynamic Discrete Choice Models," CAM Working Papers 2004-23, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Aug 2004. [Downloadable!]
  7. Mª Luz González Alvarez & Antonio Clavero Barranquero, 2008. "An analysis of income-related inequalities in the health care use by dynamic models," Hacienda Pública Española, IEF, vol. 186(3), pages 9-42, October. [Downloadable!]
  8. Cristina Hernández-Quevedo & Andrew M. Jones & Nigel Rice, 2007. "Persistence in health limitations: a European comparative analysis," Health, Econometrics and Data Group (HEDG) Working Papers 07/03, HEDG, c/o Department of Economics, University of York. [Downloadable!]
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  9. Martin Chalkley & J. S. Rennie & Colin Tilley, 2008. "Recruitment and retention incentives in health labour markets: an analysis of participation in NHS Scotland following Dental Vocational Training," Discussion Papers 218, University of Dundee, Economic Studies. [Downloadable!]
  10. Katharina Hauck & Nigel Rice, 2004. "A longitudinal analysis of mental health mobility in Britain," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 981-1001. [Downloadable!]
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