Abstract:
This paper uses the 1998-99 Canadian National Population Health Survey (NPHS) data to examine the health-income relationship that underlies the absolute income hypothesis. To allow for nonlinearity and data heterogeneity, we use a partially linear semiparametric quantile regression model. The “absolute income hypothesis” is partially true; the negative aging effects appear more pronounced for the illhealthy population than for the healthy population and when annual income is below 40,000 Canadian dollars.
Keywords:Absolute; income; hypothesis; ·; Partially; linear; quantile (search for similar items in EconPapers) JEL-codes:C14C51I12 (search for similar items in EconPapers) New Economics Papers: this item is included in nep-hea Date: 2007-07, Revised 2007-07