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An econometric analysis of self-assessed health: what does it mean and what is it hiding?

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  • Au, N.
  • Johnston, D. W.

Abstract

Self-assessed general health (SAH) is the most frequently employed health measure in economics research; however, it is poorly understood. In this paper we answer two questions: (i) what components of health does SAH measure? and (ii) does the use of SAH conceal important health effects? To answer the first question, we use a detailed health instrument and linear, logit and dynamic fixed-effects models to estimate the drivers of SAH. To answer the second question, we estimate the effects of income on disaggregated health measures using instrumental-variables fixed-effects models. We find that some health components – especially vitality – are very important to an individual when they assess their health, while others are inconsequential. We also find that this fact is partially responsible for why econometrically-sound studies find weak socioeconomic gradients in SAH. Regression results show that the effects of income on SAH are near-zero, even though income strongly affects several health components.

Suggested Citation

  • Au, N. & Johnston, D. W., 2013. "An econometric analysis of self-assessed health: what does it mean and what is it hiding?," Health, Econometrics and Data Group (HEDG) Working Papers 13/31, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:13/31
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    More about this item

    Keywords

    General Health; Self-Assessed; Instrumental Variables; Panel Data;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other

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