Simulation-based inference in dynamic panel probit models: An application to health

Simulation-based inference in dynamic panel probit models: An application to health

This paper considers the determinants of a binary indicator for the existence of functional limitations using seven waves (1991-1997) of the British Household Panel Survey (BHPS). The focal point of our analysis is the contributions of state dependence, heterogeneity and serial correlation in explai...

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Bibliographic Details
Published in:Empirical economics Vol. 29; no. 1; pp. 49 - 77
Main Authors: Contoyannis, Paul, Jones, Andrew M., Rice, Nigel
Format: Journal Article
Language:English
Published: Heidelberg Springer Nature B.V 01-01-2004
Subjects:
Archives & records
Bias
Binomial distribution
Dynamics
Economic models
Economic theory
Economics
Empirical tests
Estimating techniques
Health
Health economics
Households
Panel surveys
Polls & surveys
Probability
Public assistance programs
Simulation
Studies
Variables
United Kingdom > UK
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Summary:This paper considers the determinants of a binary indicator for the existence of functional limitations using seven waves (1991-1997) of the British Household Panel Survey (BHPS). The focal point of our analysis is the contributions of state dependence, heterogeneity and serial correlation in explaining the dynamics of health. To investigate these issues we apply static and dynamic panel probit models with flexible error structures. To estimate the models we use maximum simulated likelihood (MSL) with antithetic acceleration and implement a recently proposed test for the existence of asymptotic bias. The dynamic models show strong positive state dependence. [PUBLICATION ABSTRACT]
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0377-7332
1435-8921
DOI:10.1007/s00181-003-0189-x