IDEAS home Printed from https://ideas.repec.org/a/hit/hitjec/v57y2016i2p195-221.html
   My bibliography  Save this article

State Dependence, Unobserved Heterogeneity, And Health Dynamics In Korea

Author

Listed:
  • LEE, YONG-WOO

Abstract

This paperinvestigates the determinants of individual health and its dynamics using the Korea Laborand Income Panel Study. The paperexamines how state dependence, unobserved heterogeneity, and observed heterogeneity jointly affect overall health evolution. For this, a dynamic random effects ordered probit model with a simple solution to the initial conditions problem is estimated and the estimation results show that health dynamics in Korea are characterized by significant positive state dependence and unobserved heterogeneity. The explanatory power of many socioeconomic variables disappears if state dependence and unobserved heterogeneity are controlled for. Two robustness checks with respect to attrition bias and reporting reliability further validate these empirical results.

Suggested Citation

  • Lee, Yong-Woo, 2016. "State Dependence, Unobserved Heterogeneity, And Health Dynamics In Korea," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 195-221, December.
  • Handle: RePEc:hit:hitjec:v:57:y:2016:i:2:p:195-221
    DOI: 10.15057/28217
    as

    Download full text from publisher

    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/28217/1/HJeco0570201950.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rabe-Hesketh, Sophia & Skrondal, Anders, 2013. "Avoiding biased versions of Wooldridge’s simple solution to the initial conditions problem," Economics Letters, Elsevier, vol. 120(2), pages 346-349.
    2. Johnston, David W. & Propper, Carol & Shields, Michael A., 2009. "Comparing subjective and objective measures of health: Evidence from hypertension for the income/health gradient," Journal of Health Economics, Elsevier, vol. 28(3), pages 540-552, May.
    3. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August.
    4. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    6. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    7. Teresa Bago d’Uva & Maarten Lindeboom & Owen O’Donnell & Eddy van Doorslaer, 2011. "Slipping Anchor?: Testing the Vignettes Approach to Identification and Correction of Reporting Heterogeneity," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 875-906.
    8. Janet Currie & Mark Stabile, 2003. "Socioeconomic Status and Child Health: Why Is the Relationship Stronger for Older Children?," American Economic Review, American Economic Association, vol. 93(5), pages 1813-1823, December.
    9. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    10. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    11. Nicolas Gérard Vaillant & François-Charles Wolff, 2012. "On the reliability of self-reported health: Evidence from Albanian data," Working Papers hal-00694448, HAL.
    12. Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
    13. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    14. Suziedelyte, Agne & Johar, Meliyanni, 2013. "Can you trust survey responses? Evidence using objective health measures," Economics Letters, Elsevier, vol. 121(2), pages 163-166.
    15. Nicoletti, Cheti, 2006. "Nonresponse in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 132(2), pages 461-489, June.
    16. Rosemary Hyson & Janet Currie, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," American Economic Review, American Economic Association, vol. 89(2), pages 245-250, May.
    17. F. Wolff & N. Vaillant, 2012. "On the reliability of self-reported health: Evidence using longitudinal Albanian data," Post-Print hal-00787834, HAL.
    18. Sara Ayllón & Cristina Blanco-Perez, 2012. "State Dependence in Self-Assessed Health in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 202(3), pages 9-30, Spetember.
    19. Andrew M. Jones & Xander Koolman & Nigel Rice, 2006. "Health‐related non‐response in the British Household Panel Survey and European Community Household Panel: using inverse‐probability‐weighted estimators in non‐linear models," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(3), pages 543-569, July.
    20. Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lionel WILNER, 2019. "The Dynamics of Individual Happiness," Working Papers 2019-18, Center for Research in Economics and Statistics.

    More about this item

    Keywords

    self-assessed health; dynamic random effects ordered probit model; state dependence;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:hitjec:v:57:y:2016:i:2:p:195-221. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library). General contact details of provider: http://edirc.repec.org/data/fehitjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.