. Author manuscript; available in PMC: 2013 May 15.

Published in final edited form as: J Health Econ. 2007 Nov 29;27(2):10.1016/j.jhealeco.2007.05.002. doi: 10.1016/j.jhealeco.2007.05.002

Table A4.

Parameter Estimates Unobserved Heterogeneity Wave 1

	Par.	S.e.	t-val.
Ω₁₁	1.010	0.050	20.36
Ω₁₂	−0.012	0.039	−0.31
Ω₁₃	−0.057	0.051	−1.11
Ω₂₁	0.557	0.052	10.67
Ω₂₂	0.871	0.060	14.60
Ω₂₃	−0.112	0.057	−1.97
Ω₃₁	−0.027	0.041	−0.65
Ω₃₂	−0.458	0.049	−9.35
Ω₃₃	−0.700	0.060	−11.65

The individual effects in the initial conditions equations are specified as Ωu_i, where u_i is the vector defined in the main text (end of Section 3). Thus the individual effect in the equation explaining pain in wave 1 is Ω₁₁u_i₁ +Ω₁₂u_i₂ +Ω₁₃u_i₃, the individual effect in the equation explaining work disability in wave 1 is Ω ₂₁u_i₁ +Ω₂₂u_i₂ +Ω₂₃u_i₃, and the individual effect in the equation explaining whether someone works in wave 1 is Ω₃₁u_i₁ +Ω₃₂u_i₂ +Ω₃₃u_i₃. In addition, the initial conditions equations also contain idiosyncratic error terms assumed to be standard normal, independent of each other and everything else.