STATE DEPENDENCE AND HETEROGENEITY IN HEALTH USING A BIAS‐CORRECTED FIXED‐EFFECTS ESTIMATOR

B-Tier
Journal: Journal of Applied Econometrics
Year: 2014
Volume: 29
Issue: 2
Pages: 181-207

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

SUMMARY This paper estimates a dynamic ordered probit model of self‐assessed health with two fixed effects: one in the linear index equation and one in the cut‐points. This robustly controls for heterogeneity in unobserved health status and in reporting behavior, although we cannot separate both sources of heterogeneity. We find important state dependence effects, and small but significant effects of income and other socioeconomic variables. Having dynamics and flexibly accounting for unobserved heterogeneity matters for those estimates. We also contribute to the bias correction literature in nonlinear panel models by comparing and applying two of the existing proposals to our model. Copyright © 2012 John Wiley & Sons, Ltd.

Technical Details

RePEc Handle
repec:wly:japmet:v:29:y:2014:i:2:p:181-207
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25