Equation (1)

Equation (2)

DGP

Estimated coef.

DGP

Estimated coef.

(1)

(2)

(1’)

(2’)

Dynamic Equation

y¹ − 1

0.3

$\underset{\left(0.05\right)}{{0.2195}^{{{}^{\ast }}^{\ast }{}^{\ast }}}$

−0.4

$\underset{\left(0.0567\right)}{-0.0051}$

y² − 1

0.1

$\underset{\left(0.0513\right)}{{0.1267}^{{{}^{\ast }}^{\ast }}}$

0.4

$\underset{\left(0.061\right)}{{0.4926}^{***}}$

Gender = Male

−0.05

$\underset{\left(0.0521\right)}{-0.0554}$

0.05

$\underset{\left(0.0594\right)}{0.073}$

Medical density

−

−

0.5

$\underset{\left(1.1111\right)}{0.5687}$

Unemployment rate

−0.2

$\underset{\left(0.269\right)}{-{0.1682}^{***}}$

−

−

Intercept

1.9

$\underset{\left(0.2667\right)}{{2.3113}^{***}}$

−0.4

$\underset{\left(2.122\right)}{-0.4677}$

Initial Conditions

Illness before prof: life

0.3

$\underset{\left(0.0283\right)}{{0.3032}^{***}}$

−0.2

$\underset{\left(0.0221\right)}{-{0.1624}^{***}}$

Age

−

−

−0.08

$\underset{\left(0.0202\right)}{-{0.093}^{***}}$

Unemployment rate

−0.2

$\underset{\left(0.057\right)}{-{0.144}^{{{}^{\ast }}^{\ast }}}$

−

−

Intercept

−0.2

$\underset{\left(0.6194\right)}{-0.7331}$

2

$\underset{\left(0.4591\right)}{{2.6757}^{***}}$

${\lambda }_1$

0.4

$\underset{\left(0.0651\right)}{{0.2581}^{***}}$

0.3

$\underset{\left(0.0463\right)}{{0.2660}^{***}}$

${\lambda }_2$

−0.5

$\underset{\left(0.0753\right)}{-{0.5168}^{***}}$

0.5

$\underset{\left(0.0598\right)}{{0.7022}^{***}}$

Covariance matrix structure

DGP

Estimated coef.

(4)

(5)

${\sigma }_1$

2.1

$\underset{\left(0.1034\right)}{{2.4399}^{***}}$

${\sigma }_2$

3.1

$\underset{\left(0.1365\right)}{{2.7649}^{***}}$

${\rho }_{\eta }$

0.7

$\underset{\left(0.0212\right)}{{0.7188}^{***}}$

${\rho }_{\zeta }$

0.5

$\underset{\left(0.0419\right)}{{0.5290}^{***}}$

${\rho }_{\epsilon }$

0.4

$\underset{\left(0.1378\right)}{{0.6972}^{***}}$