Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223288 
Year of Publication: 
2020
Series/Report no.: 
IFS Working Papers No. W20/12
Publisher: 
Institute for Fiscal Studies (IFS), London
Abstract: 
We estimate a model that allows for dynamic and interdependent responses of morbidity in different local areas to economic conditions at the local and national level, with statistical selection of optimal local area. We apply this approach to quarterly British data on chronic health conditions for those of working age over the period 2002-2016. We find strong and robust counter-cyclical relationships for overall chronic health, and for five broad types of health conditions. Chronic health conditions therefore increase in poor economic times. There is considerable spatial heterogeneity across local areas, with the counter-cyclical relationship being strongest in poorer local areas with more traditional industrial structures. We find that feedback effects are important across local areas and dynamic effects that differ by health condition. Consequently, the standard panel data model commonly used in the literature considerably under-estimates the extent of the counter-cyclical relationship in the British context.
Subjects: 
Macroeconomic conditions
Health
Morbidity
Dynamics
Heterogeneity
Aggregation
JEL: 
J10
J21
C33
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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