Effects of Basic Elder Pension on Self-Assessed Health: Fixed-Effect Ordered Logit with Time-Varying Parameters
1
조회
0
다운로드
0
인용
0
참고문헌
키워드
초록
We examine the effects of the Basic Elder Pension (BEP) in Korea on self-assessed health for the elderly of age 65 or higher, using two wave Korean panel data. As there could be innately healthy/optimistic individuals, it is important to allow for time-constant individual effects possibly related to regressors,which is, however, difficult as the dependent variable takes on four ordered categories. To overcome this difficulty, we transform the ordered discrete response into binary, and apply Panel Conditional Logit Estimator (PCLE) to the binary model. Since there are three ways to transform four ordered categories into binary,we obtain three PCLE’s in total. To impose the restriction that the same parameters are estimated in those PCLE’s, we use minimum distance estimator. We find that BEP has a small positive effect that is significant: 100% increment in BEP would result in an increment of 3–7% of ‘one standard deviation of the latent continuous health propensity’. Finding a small effect might be natural, as improving health for the elderly would be a hard thing to do.
Abstract
We examine the effects of the Basic Elder Pension (BEP) in Korea on self-assessed health for the elderly of age 65 or higher, using two wave Korean panel data. As there could be innately healthy/optimistic individuals, it is important to allow for time-constant individual effects possibly related to regressors,which is, however, difficult as the dependent variable takes on four ordered categories. To overcome this difficulty, we transform the ordered discrete response into binary, and apply Panel Conditional Logit Estimator (PCLE) to the binary model. Since there are three ways to transform four ordered categories into binary,we obtain three PCLE’s in total. To impose the restriction that the same parameters are estimated in those PCLE’s, we use minimum distance estimator. We find that BEP has a small positive effect that is significant: 100% increment in BEP would result in an increment of 3–7% of ‘one standard deviation of the latent continuous health propensity’. Finding a small effect might be natural, as improving health for the elderly would be a hard thing to do.
참고문헌 (9)
- Borghesi, S., "Happiness and health: two paradoxes", Journal of Economic Surveys, 26, pp.203~233 (2012)
- Carro, J., "State dependence and heterogeneity in health using a bias-corrected fixed effects estimator", Journal of Applied Econometrics (2013)
- Greene, W., "Heterogeneity in ordered choice models: a review with applications to selfassessed health", Journal of Economic Surveys, 27 (2013)
- 강성호, "기초노령연금의 탈빈곤 효과 및 계층별 소득보장 효과 분석", 한국사회정책, 17(2), pp.43~71 (2010), 한국사회정책학회
- Kim, J. H., "Analysis on income inequality and polarization due to Basic Elder Pension", Korean Policy Study Review, 21, pp.421~446 (2012)
- Lee, M. J., "Panel Data Econometrics: Methods-of-moments and Limited Dependent Variables" (2002), Academic Press
- Lee, M. J., "Micro-econometrics: Methods of Moments and Limited Dependent Variables" (2010), Springer
- Lee, M. J., "Panel conditional and multinomial logit estimators, The Oxford Handbook of Panel Data Econometrics" (2013), Oxford University Press
- Nahm, S. H., "A study on the Korean trend of inequality and polarization in income and consumption: 1995-2005", Economic Studies, 56, pp.219~247 (2008)