The Living Arrangement Dynamics of Sick, Elderly Individuals

Benoit Dostie () and Pierre Thomas Leger ()

No 03-07, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: In this paper, we address the dynamics associated with living-arrangement decisions of sick, elderly individuals. Using data from the Panel Study of Income Dynamics and its Parental Health Supplement, we construct the complete living-arrangement histories of elderly individuals in need of care. We use a simultaneous random-effects competing-risks model to analyze the impact of demographic characteristics, health and wealth on the living-arrangement decisions of sick elderly individuals while taking into account state and duration dependence as well as unobserved heterogeneity. We find that state and duration dependence serve as Important predictors for the living arrangement choices of sick elderly individuals.

Keywords: Living Arrangement Dynamics; Competing Risks; Markov Models; Unobserved Heterogeneity; Aging. (search for similar items in EconPapers)
JEL-codes: J14 C41 I10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-lab
Date: 2003-12
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Working Paper: The Living Arrangement Dynamics of Sick, Elderly Individuals (2004)
Journal Article: The Living Arrangement Dynamics of Sick, Elderly Individuals (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:iea:carech:0307

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