Abstract
This paper studies for the first time the importance of the contribution of state dependence to the explanation of self-assessed health dynamics in Spain. With this objective in mind, we estimate a series of econometric models including a new proposal for a Heckman selection model with an initial conditions equation run as an ordered probit. Evidence suggests that state dependence and unobserved heterogeneity account for much of the probability of reporting a specific health status while the significance of observed heterogeneity vanishes when controlling for both. However, state dependence looses importance once the error structure of the estimations is improved. © 2012, Instituto de Estudios Fiscales.
Original language | English |
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Pages (from-to) | 9-29 |
Journal | Hacienda Publica Espanola |
Volume | 202 |
Issue number | 3 |
Publication status | Published - 1 Dec 2012 |
Keywords
- Self-assesed health dynamics
- State dependence
- Unobserved heterogeneity