Borsch-Supan, Axel, Hajivassiliou, Vassilis 
ORCID: 0009-0000-7041-0791, Kotlikoff, Laurence J. and Morris, John N.
(1990)
Health, children, and elderly living arrangements: a multiperiod-multinomial probit model with unobserved heterogeneity and autocorrelated errors.
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National Bureau for Economic Research, Cambridge, MA., USA.
Abstract
This paper develops a general multiperiod-multinomial probit model for panel data to estimate the living arrangements of the elderly. The model has the following features: (a) In each period choices do not necessarily obey the assumption of independence of irrelevant alternatives. (b) Unobserved person-specific attributes are treated as random effects. These random effects may also be correlated across alternatives. (c) In addition, unobserved choice-specific utility components may persist over some time, creating an autoregressive and/or heteroscedastic error structure. The model is estimated by simulating the choice probabilities in the likelihood function. We examine several variants of the specification of the correlation structure and investigate the extent the biases created by ignoring intertemporal correlations.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Official URL: | http://www.nber.org |
| Additional Information: | © 1990 the authors |
| Divisions: | Economics STICERD |
| Subjects: | H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HB Economic Theory |
| Date Deposited: | 05 Jun 2008 09:11 |
| Last Modified: | 11 Dec 2024 18:18 |
| URI: | http://eprints.lse.ac.uk/id/eprint/5382 |
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