Health, children, and elderly living arrangements: a multiperiod-multinomial probit model with unobserved heterogeneity and autocorrelated errors

摘要: This paper develops a general multiperiod-multinomial probit model for panel data to estimate the living arrangements of elderly. The has following features: (a) In each period choices do not necessarily obey assumption independence irrelevant alternatives. (b) Unobserved person-specific attributes are treated as random effects. These effects may also be correlated across (c) addition, unobserved choice-specific utility components persist over some time, creating an autoregressive and/or heteroscedastic error structure. is estimated by simulating choice probabilities in likelihood function. We examine several variants specification correlation structure and investigate extent biases created ignoring intertemporal correlations.