TAILIEUCHUNG - Topics in the Economics of Aging

The Dietary Guidelines is intended primarily for use by policymakers, healthcare providers, nutritionists, and nutrition educators. The information in the Dietary Guidelines is useful for the development of educational materials and aids policymakers in designing and imple­ menting nutrition-related programs, including federal food, nutrition education, and information programs. In addition, this publication has the potential to provide authoritative statements as provided for in the Food and Drug Administration Modernization Act (FDAMA). Because the Dietary Guidelines contains discussions where the science is emerging, only statements included in the Executive Summary and the sections titled “Key Recommendations,” which reflect the preponderance of scientific. | This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title Topics in the Economics of Aging Volume Author Editor David A. Wise editor Volume Publisher University of Chicago Press Volume ISBN 0-226-90298-6 Volume URL http books wise92-1 Conference Date April 5-7 1990 Publication Date January 1992 Chapter Title Health Children and Elderly Living Arrangements A MultiperiodProbit Model with Unobserved Heterogeneity and Autocorrelated Errors Chapter Author Axel Borsch-Supan Vassilis Hajivassiliou Laurence J. Kotlikoff Chapter URL http chapters c7099 Chapter pages in book p. 79 - 108 3 Health Children and Elderly Living Arrangements A Multiperiod-Multinomial Probit Model with Unobserved Heterogeneity and Autocorrelated Errors Axel Bôrsch-Supan Vassilis Hajivassiliou Laurence J. Kotlikoff and John N. Morris Decisions by the elderly regarding their living arrangements . living alone living with children or living in a nursing home seem best modeled as a discrete choice problem in which the elderly view certain choices as closer substitutes than others. For example living with children may more closely substitute for living independently than living in an institution does. Unobserved determinants of living arrangements at a point in time are therefore quite likely to be correlated. In the parlance of discrete choice models this means that the assumption of the independence of irrelevant alternatives IIA will be violated. Indeed a number of recent studies of living arrangements of the elderly document the violation of In addition to relaxing the IIA assumption of no intratemporal correlation between unobserved determinants of competing living arrangements one should also relax the assumption of no intertemporal correlation of such determinants. The assumption of no intertemporal correlation underlies most studies of living arrangements particularly those estimated with cross-sectional .

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