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State Dependence in Self-Assessed Health in Spain

Sara Ayllón () and Cristina Blanco-Perez ()

Hacienda Pública Española / Review of Public Economics, 2012, vol. 202, issue 3, 9-30

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.

Keywords: State Dependence; Self-assesed Health Dynamics; Unobserved Heterogeneity (search for similar items in EconPapers)
JEL-codes: C1 I1 (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:hpe:journl:y:2012:v:202:i:3:p:9-30