DGP

Q = 10

Q = 16

Q = 22

Q = 24

y1

Initial conditions

Illness before prof: life

0.3

0.3005 * * * ( 0.0278 )

0.3032 * * * ( 0.0283 )

0.3022 * * * ( 0.0282 )

0.3026 * * * ( 0.0284 )

Unemployment rate

−0.2

0.1592 * * * ( 0.0573 )

0.1440 * * ( 0.0570 )

0.1437 * * ( 0.0571 )

0.1431 * * ( 0.0572 )

Intercept

−0.2

0.6120 ( 0.6197 )

0.7331 ( 0.6194 )

0.7065 ( 0.6187 )

0.7153 ( 0.6188 )

λ 11

0.4

0.2608 * * * ( 0.0644 )

0.2581 * * * ( 0.0651 )

0.2584 * * * ( 0.0658 )

0.2628 * * * ( 0.0664 )

λ 12

−0.5

0.5076 * * * ( 0.0723 )

0.5168 * * * ( 0.0753 )

0.5051 * * * ( 0.0744 )

0.5019 * * * ( 0.0741 )

y2

Initial conditions

Age

−0.08

0.0859 * * * ( 0.0196 )

0.0930 * * * ( 0.0202 )

0.0929 * * * ( 0.0205 )

0.0943 * * * ( 0.0207 )

Illness before prof: life

−0.2

0.1593 * * * ( 0.0221 )

0.1624 * * * ( 0.0221 )

0.1648 * * * ( 0.0225 )

0.1650 * * * ( 0.0226 )

Intercept

2

2.7329 * * * ( 0.4483 )

2.6757 * * * ( 0.4591 )

2.5788 * * * ( 0.4644 )

2.5904 * * * ( 0.4676 )

λ 21

0.3

0.2689 * * * ( 0.0467 )

0.2660 * * * ( 0.0463 )

0.2691 * * * ( 0.0474 )

0.2679 * * * ( 0.0475 )

λ 22

0.5

0.7136 * * * ( 0.0607 )

0.7022 * * * ( 0.0598 )

0.7008 * * * ( 0.0625 )

0.6932 * * * ( 0.0626 )

Covariance matrix structure

σ 1

2.1

2.5202 * * * ( 0.1053 )

2.4399 * * * ( 0.1034 )

2.3920 * * * ( 0.1047 )

2.3898 * * * ( 0.1051 )

σ 2

3.1

2.7012 * * * ( 0.1307 )

2.7649 * * * ( 0.1365 )

2.7928 * * * ( 0.1444 )

2.8281 * * * ( 0.1468 )

ρ η

0.7

0.7380 * * * ( 0.0206 )

0.7188 * * * ( 0.0212 )

0.7143 * * * ( 0.0219 )

0.7162 * * * ( 0.0219 )

ρ ζ

0.5

0.5451 * * * ( 0.0411 )

0.5290 * * * ( 0.0419 )

0.5225 * * * ( 0.0423 )

0.5145 * * * ( 0.0424 )

ρ ε

0.4

0.6550 * * * ( 0.1394 )

0.6972 * * * ( 0.1378 )

0.6996 * * * ( 0.1381 )

0.6944 * * * ( 0.1371 )