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Disentangling the Age, Period, and Cohort Effects using a Modeling Approach

Author

Listed:
  • France Portrait

    () (Vrije Universiteit Amsterdam)

  • Rob Alessie

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Dorly Deeg

    () (Vrije Universiteit Medical Center)

Abstract

Disentangling age, period, and cohort effects in explaining health trends is crucial to assess future prevalences of health disorders. The identification problem -- age, period, and cohort effects are perfectly linearly related -- is tackled by modeling cohort and period effects using lifetime macro-indicators. This approach -- innovative in analyses on health trends -- handles theidentification problem and explains mechanisms underlying cohort and period effects. The modeling approach is compared with graphical and two-factors methods. The methods are applied on Dutch trends in functional limitations using data from the Longitudinal Aging Study Amsterdam. We argue that the modeling approach is a highly appropriate alternative. We find that theprevalence of functional limitations increases in the nineteen-nineties due to adverse cohort and period effects. Cohort effects are explained by hygienic and socio-economic conditions during childhood and period effects by restrictions in availability of health care services.

Suggested Citation

  • France Portrait & Rob Alessie & Dorly Deeg, 2002. "Disentangling the Age, Period, and Cohort Effects using a Modeling Approach," Tinbergen Institute Discussion Papers 02-120/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20020120
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    File URL: https://papers.tinbergen.nl/02120.pdf
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    Cited by:

    1. Rob Euwals & Marike Knoef & Daniel Vuuren, 2011. "The trend in female labour force participation: what can be expected for the future?," Empirical Economics, Springer, vol. 40(3), pages 729-753, May.
    2. Nicole Bosch & Anja Deelen & Rob Euwals, 2010. "Is Partā€time Employment Here to Stay? Working Hours of Dutch Women over Successive Generations," LABOUR, CEIS, vol. 24(1), pages 35-54, March.

    More about this item

    Keywords

    Age-Period-Cohort Analysis; Trends in Functional Limitations; Aging;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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