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Living Arrangements: Health and Wealth Effects

  • Axel Borsch-Supan
  • Daniel McFadden
  • Reinhold Schnabel

This paper investigates the choice of living arrangements among elderly Americans. It has two specific aims. First, because health is not directly measurable and can only be described by indicators such as ADLs and IADLs, it explores a new econometric approach to model the influence of the latent health status on living arrangements. Second, it exploits the NBER Economic Supplement of the Longitudinal Study on Aging to investigate the role of housing and financial wealth in the choice of living arrangements.

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File URL: http://www.nber.org/papers/w4398.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4398.

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Date of creation: Jul 1993
Date of revision:
Publication status: published as Advances in the Economics of Aging, David A. Wise, pp. 193-212, (Chicago, University of Chicago Press, 1996).
Handle: RePEc:nbr:nberwo:4398
Note: AG
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Web page: http://www.nber.org
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  1. Axel Borsch-Supan & Jagadeesh Gokhale & Laurence J. Kotlikoff & John N. Morris, 1990. "The Provision of Time to the Elderly by Their Children," NBER Working Papers 3363, National Bureau of Economic Research, Inc.
  2. Axel Börsch-Supan, 1989. "Household Dissolution and the Choice of Alternative Living Arrangements among Elderly Americans," NBER Chapters, in: The Economics of Aging, pages 119-150 National Bureau of Economic Research, Inc.
  3. K. Jöreskog, 1967. "Some contributions to maximum likelihood factor analysis," Psychometrika, Springer, vol. 32(4), pages 443-482, December.
  4. David T. Ellwood & Thomas J. Kane, 1990. "The American Way of Aging: An Event History Analysis," NBER Chapters, in: Issues in the Economics of Aging, pages 121-148 National Bureau of Economic Research, Inc.
  5. Steven F. Venti & David A. Wise, 1990. "But They Don't Want to Reduce Housing Equity," NBER Chapters, in: Issues in the Economics of Aging, pages 13-32 National Bureau of Economic Research, Inc.
  6. Laurence J. Kotlikoff & John N. Morris, 1987. "How Much Care Do the Aged Receive from Their Children? A Bimodal Picture of Contact and Assistance," NBER Working Papers 2391, National Bureau of Economic Research, Inc.
  7. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
  8. 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.
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