TY  - JOUR
AU  - Borsch-Supan,Axel
AU  - Hajivassiliou,Vassilis
AU  - Kotlikoff,Laurence J.
AU  - Morris,John N.
TI  - Health, Children, and Elderly Living Arrangements:  A Multiperiod-Multinomial Probit Model with Unobserved Heterogeneity and Autocorrelated Errors
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3343
PY  - 1990
Y2  - April 1990
UR  - http://www.nber.org/papers/w3343
L1  - http://www.nber.org/papers/w3343.pdf
N1  - Author contact info:
Axel H. Boersch-Supan
Munich Center for the Economics of Aging
Max Planck Institute for Social Law and Social Pol
Amalienstrasse 33
80779 Munich
GERMANY
Tel: +49 (89) 3860-2355
Fax: 49 (89) 3860-2390
E-Mail: axel@boersch-supan.de

Vassilis Hajivassiliou

Laurence J. Kotlikoff
Department of Economics
Boston University
270 Bay State Road
Boston, MA 02215
Tel: 617/353-4002
Fax: 617/353-4001
E-Mail: kotlikoff@gmail.com

John N. Morris
M1  - published as Axel Borsch-Supan, Vassilis Hajivassiliou, Laurence J. Kotlikoff. "Health, Children, and Elderly Living Arrangements: A Multiperiod-Multinomial Probit Model with Unobserved Heterogeneity and Autocorrelated Errors," in David A. Wise, editor, "Topics in the Economics of Aging" University of Chicago Press (1992)

AB  - 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: <br>(a) In each period choices do not necessarily obey the assumption of independence of irrelevant alternatives. <br>(b) Unobserved person-specific attributes are treated as random effects. These random effects may also be correlated across alternatives.<br>(c) In addition, unobserved choice-specific utility components may persist over some time, creating an autoregressive and/or heteroscedastic error structure. <br>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.
ER  -