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Disentangling the Age, Period, and Cohort Effects using a Modeling Approach

Author

Listed:
  • France Portrait

    (Vrije Universiteit Amsterdam)

  • Rob Alessie

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Dorly Deeg

    (Vrije Universiteit Medical Center)

Abstract

Disentangling age, period, and cohort effects in explaining health trends is crucial to assess future prevalences of health disorders. The identification problem -- age, period, and cohort effects are perfectly linearly related -- is tackled by modeling cohort and period effects using lifetime macro-indicators. This approach -- innovative in analyses on health trends -- handles theidentification problem and explains mechanisms underlying cohort and period effects. The modeling approach is compared with graphical and two-factors methods. The methods are applied on Dutch trends in functional limitations using data from the Longitudinal Aging Study Amsterdam. We argue that the modeling approach is a highly appropriate alternative. We find that theprevalence of functional limitations increases in the nineteen-nineties due to adverse cohort and period effects. Cohort effects are explained by hygienic and socio-economic conditions during childhood and period effects by restrictions in availability of health care services.

Suggested Citation

  • France Portrait & Rob Alessie & Dorly Deeg, 2002. "Disentangling the Age, Period, and Cohort Effects using a Modeling Approach," Tinbergen Institute Discussion Papers 02-120/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020120
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    Citations

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    Cited by:

    1. Biørn, Erik, 2013. "Age-Cohort-Time Effects in Sickness Absence: Exploring a Large Data Set by Polynomial Regression," Memorandum 19/2013, Oslo University, Department of Economics.
    2. Biørn, Erik, 2013. "Identifying Age-Cohort-Time Effects, Their Curvature and Interactions from Polynomials: Examples Related to Sickness Absence," Memorandum 08/2013, Oslo University, Department of Economics.
    3. Kok, Suzanne & Bosch, Nicole & Deelen, Anja & Euwals, Rob, 2011. "Migrant Women on the Labour Market: On the Role of Home- and Host-Country Participation," IZA Discussion Papers 5817, Institute of Labor Economics (IZA).
    4. Rob Euwals & Marike Knoef & Daniel Vuuren, 2011. "The trend in female labour force participation: what can be expected for the future?," Empirical Economics, Springer, vol. 40(3), pages 729-753, May.
    5. Nicole Bosch & Anja Deelen & Rob Euwals, 2010. "Is Part‐time Employment Here to Stay? Working Hours of Dutch Women over Successive Generations," LABOUR, CEIS, vol. 24(1), pages 35-54, March.
    6. Bosch, Nicole & Deelen, Anja & Euwals, Rob, 2008. "Is Part-time Employment Here To Stay? Evidence from the Dutch Labour Force Survey 1992–2005," IZA Discussion Papers 3367, Institute of Labor Economics (IZA).
    7. Nicole Bosch & Anja Deelen & Rob Euwals, 2008. "Is part-time employment here to stay? Evidence from the Dutch Labour Force Survey 1992-2005," CPB Discussion Paper 100.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Rob Euwals & Marike Knoef & Daniel Vuuren, 2011. "The trend in female labour force participation: what can be expected for the future?," Empirical Economics, Springer, vol. 40(3), pages 729-753, May.

    More about this item

    Keywords

    Age-Period-Cohort Analysis; Trends in Functional Limitations; Aging;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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