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The Absolute Health Income Hypothesis Revisited : A Semiparametric Quantile Regression Approach

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  • Thanasis Stengos
  • Yiguo Sun

Abstract

This paper uses the 1998-99 Canadian National Population Health Survey (NPHS) data to examine the health-income relationship that underlies the absolute income hypothesis. To allow for nonlinearity and data heterogeneity, we use a partially linear semiparametric quantile regression model. Among more than dozen of socioeconomic variables, we find that family income, age and the food security status are the most important factors in explaining an individual's overall functional health. The "absolute income hypothesis" is partially true; the negative aging effects appear more pronounced for the ill-healthy population than for the healthy population and when annual income is below 40,000 Canadian dollars.

Suggested Citation

  • Thanasis Stengos & Yiguo Sun, 2005. "The Absolute Health Income Hypothesis Revisited : A Semiparametric Quantile Regression Approach," University of Cyprus Working Papers in Economics 7-2005, University of Cyprus Department of Economics.
  • Handle: RePEc:ucy:cypeua:7-2005
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    References listed on IDEAS

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    Cited by:

    1. Ignacio Moral-Arce & Stefan Sperlich & Ana Fernández-Saínz & Maria Roca, 2012. "Trends in the Gender Pay Gap in Spain: A Semiparametric Analysis," Journal of Labor Research, Springer, vol. 33(2), pages 173-195, June.
    2. Thanasis Stengos & Ximing Wu, 2010. "Information-Theoretic Distribution Test with Application to Normality," Econometric Reviews, Taylor & Francis Journals, vol. 29(3), pages 307-329.

    More about this item

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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