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Simulation-based Inference in Dynamic Panel Probit Models: an Application to Health

Author

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  • Paul Contoyannis
  • Andrew M. Jones
  • Nigel Rice
Abstract
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 a consideration of the relative contributions of state dependence, heterogeneity and serial correlation in expanding 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 show strong positive state dependence, with the effect for men around 150% of the effect for women.

Suggested Citation

  • Paul Contoyannis & Andrew M. Jones & Nigel Rice, 2002. "Simulation-based Inference in Dynamic Panel Probit Models: an Application to Health," Department of Economics Working Papers 2002-12, McMaster University.
    • Handle: RePEc:mcm:deptwp:2002-12
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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2002-12.pdf
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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