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. 2013 Sep;32(5):922–937. doi: 10.1016/j.jhealeco.2013.07.001

Table 3.

Two-Part Model and the implied Equilibrium Health Function.

[1] Probit survival model [2] Error Correction Model conditional on survival [3] Equilibrium health function
Left hand side variable SURVIVAL ΔHEALTH hs*



Explanatory variables Coeff. Coeff. Coeff.
Std error Std error Std error



ΔLNINCOME 0.00819***
0.00237
ΔSMOKING −0.00022
0.00034
HEALTH99 2.03316*** −0.51034***
0.23017 0.01340
LNINCOME99 0.07344 0.01623*** 0.03179***
0.06229 0.00274 0.00539
SMOKING99 −0.01485*** −0.00092*** −0.00181***
0.00413 0.00021 0.00040
AGE99 0.02964** 0.00050 0.00098
0.01315 0.00044 0.00080
AGESQ99 −0.00064*** −0.00002*** −0.00004***
0.00011 0.00000 0.00001
MALE −0.33276*** 0.01456*** 0.02854***
0.06746 0.00270 0.00519
NONWHITE 0.11852 −0.00494 −0.00967
0.14809 0.00391 0.00680
ADVEDUC 0.21339** 0.01048*** 0.02054**
0.09378 0.00397 0.00817
STDEDONLY 0.14268 0.01389*** 0.02722***
0.09265 0.00391 0.00811
Constant 0.63080 0.36988*** 0.72478***
0.42130 0.01552 0.02447



Sample size 9677 9078
Pseudo R2/R2 0.3656 0.2617
Wald χ2(9) 650.76***
F(11,398) 139.44***

Source: Authors’ calculations based on Eqs. (5a), (7) and (8), with the coefficient estimates in column [3] derived by manipulation of the estimation results in column [2]. Robust standard errors in columns [1] and [2] allow for the sample design. Bootstrapped standard errors in column [3] are based on 2000 replications. Statistical significance at 1%, 5% and 10% levels are denoted by ***, ** and *, respectively.