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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.

Suggested Citation

  • Benoit Dostie & Pierre Thomas Léger, 2004. "The Living Arrangement Dynamics of Sick, Elderly Individuals," CIRANO Working Papers 2004s-03, CIRANO.
  • Handle: RePEc:cir:cirwor:2004s-03
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    Cited by:

    1. Matteo Lippi Bruni & Cristina Ugolini, 2016. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Review of Economics of the Household, Springer, vol. 14(1), pages 155-183, March.
    2. repec:eee:hapoch:v1_951 is not listed on IDEAS
    3. Michelle Sovinsky & Steven Stern, 2016. "Dynamic modelling of long-term care decisions," Review of Economics of the Household, Springer, vol. 14(2), pages 463-488, June.
    4. repec:wly:quante:v:8:y:2017:i:1:p:277-316 is not listed on IDEAS
    5. Ha Trong Nguyen & Luke B. Connelly, 2017. "The Dynamics of Informal Care Provision in an Australian Household Panel Survey: Previous Work Characteristics and Future Care Provision," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 395-419, September.
    6. David C. Grabowski & Edward C. Norton & Courtney H. Van Houtven, 2012. "Informal Care," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 30 Edward Elgar Publishing.
    7. Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2015. "Reciprocity in the Formation of Intergenerational Coresidence," Journal of Family and Economic Issues, Springer, vol. 36(2), pages 192-209, June.
    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, September.
    9. 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.
    10. Matteo Lippi Bruni & Cristina Ugolini, 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.
    11. Shiko Maruyama & Meliyanni Johar, 2017. "Do siblings free‐ride in “being there” for parents?," Quantitative Economics, Econometric Society, vol. 8(1), pages 277-316, March.
    12. Lingguo Cheng & Hong Liu & Ye Zhang & Zhong Zhao, 2018. "The heterogeneous impact of pension income on elderly living arrangements: evidence from China’s new rural pension scheme," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 155-192, January.
    13. Max Groneck & Frederic Krehl, 2014. "Bequests and Informal Long-Term Care: Evidence from the HRS Exit Interviews," Working Paper Series in Economics 79, University of Cologne, Department of Economics.
    14. 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.
    15. repec:uwp:jhriss:v:52:y:2017:i:2:p:531-572 is not listed on IDEAS
    16. 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.

    More about this item

    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;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I10 - Health, Education, and Welfare - - Health - - - General

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