Equation (1)

Equation (2)

DGP

coef:

coef:

DGP

coef:

coef:

(1)

(2)

(3)

(1’)

(2’)

(3’)

Dynamic Equation

y1 − 1

0.3

0.2195 * * * ( 0.05 )

0.2184 * * * ( 0.05 )

−0.1

0.0051 ( 0.0567 )

0.0052 ( 0.0568 )

y2 − 1

0.1

0.1267 * * ( 0.0513 )

0.1283 * * ( 0.0513 )

0.4

0.4926 * * * ( 0.061 )

0.4944 * * * ( 0.0612 )

Gender = Male

−0.05

0.0554 ( 0.0521 )

0.0571 ( 0.0521 )

0.05

0.073 ( 0.0594 )

0.0751 ( 0.0596 )

Medical density

0.5

0.5687 ( 1.1111 )

0.5567 ( 1.1112 )

Unemployment rate

−0.2

0.1682 * * * ( 0.0269 )

0.1698 * * * ( 0.0269 )

Not French

0.1246 ( 0.0956 )

0.0015 ( 0.1076 )

rural

0.0743 ( 0.0628 )

0.0283 ( 0.0719 )

Intercept

1.9

2.3113 * * * ( 0.2667 )

2.2994 * * * ( 0.2667 )

−0.04

0.4677 ( 2.122 )

0.4527 ( 2.1215 )

Initial Conditions

Illness before prof: life

0.3

0.3032 * * * ( 0.0283 )

0.3032 * * * ( 0.0283 )

−0.2

0.1624 * * * ( 0.0221 )

0.1627 * * * ( 0.0221 )

Age

−0.08

0.093 * * * ( 0.0202 )

0.0932 * * * ( 0.0202 )

Unemployment rate

−0.2

0.144 * * ( 0.057 )

0.144 * * ( 0.057 )

Intercept

−0.2

0.7331 ( 0.6194 )

0.7335 ( 0.6195 )

2

2.6757 * * * ( 0.4591 )

2.6803 * * * ( 0.4595 )

λ 1

0.4

0.2581 * * * ( 0.0651 )

0.2582 * * * ( 0.0653 )

0.3

0.266 * * * ( 0.0463 )

0.267 * * * ( 0.0464 )

λ 2

−0.5

0.5168 * * * ( 0.0753 )

0.5171 * * * ( 0.0754 )

0.5

0.7022 * * * ( 0.0598 )

0.703 * * * ( 0.0599 )

Covariance matrix structure

DGP

Estimated coef:

Estimated coef:

(4)

(5)

(6)

σ 1

2.1

2.4399 * * * ( 0.1034 )

2.4353 * * * ( 0.1032 )

σ 2

3.1

2.7649 * * * ( 0.1365 )

2.763 * * * ( 0.1366 )

ρ η

0.7

0.7188 * * * ( 0.0212 )

0.7187 * * * ( 0.0212 )

ρ ζ

0.5

0.529 * * * ( 0.0419 )

0.5301 * * * ( 0.0419 )

ρ ε

0.4

0.6972 * * * ( 0.1379 )

0.697 * * * ( 0.1378 )