Arbeitspapier

Identifying age-cohort-time effects, their curvature and interactions from polynomials: Examples related to sickness absence

In the paper is considered identification of coefficients in equations explaining a continuous variable, say the number of sickness absence days of an individual per year, by cohort, time and age, subject to their definitional identity. Extensions of a linear equation to polynomials, including additive polynomials, are explored. The cohort+time=age identity makes the treatment of interactions important. If no interactions between the three variables are included, only the coefficients of the linear terms remain unidentified unless additional information is available. Illustrations using a large data set for individual long-term sickness absence in Norway are given. The sensitivity to the estimated marginal effects of cohort and age at the samplemean, as well as conclusions about the equations' curvature, are illustrated. We find notable differences in this respect between linear and quadratic equations on the one hand and cubic and fourth-order polynomials on the other.

Language
Englisch

Bibliographic citation
Series: Memorandum ; No. 08/2013

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Model Evaluation, Validation, and Selection
Social Security and Public Pensions
Health: Government Policy; Regulation; Public Health
Labor Force and Employment, Size, and Structure
Subject
age-cohort-time problem
identification
polynomial regression
interaction
age-cohort curvature
panel data
sickness absence

Event
Geistige Schöpfung
(who)
Biørn, Erik
Event
Veröffentlichung
(who)
University of Oslo, Department of Economics
(where)
Oslo
(when)
2013

Handle
Last update
20.09.2024, 8:22 AM CEST

Data provider

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Object type

  • Arbeitspapier

Associated

  • Biørn, Erik
  • University of Oslo, Department of Economics

Time of origin

  • 2013

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