Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2002-12-09 Number: 02-120/3 Author-Name: France Portrait Author-Email: france.portrait@falw.vu.nl Author-Workplace-Name: Vrije Universiteit Amsterdam Author-Name: Rob Alessie Author-Email: ralessie@feweb.vu.nl Author-Workplace-Name: Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam Author-Name: Dorly Deeg Author-Email: DJH.Deeg.emgo@med.vu.nl Author-Workplace-Name: Vrije Universiteit Medical Center Title: Disentangling the Age, Period, and Cohort Effects using a Modeling Approach Abstract: Disentangling age, period, and cohort effects in explaining health trends is crucial to assess future prevalences of health disorders. The identification problem -- age, period, and cohort effects are perfectly linearly related -- is tackled by modeling cohort and period effects using lifetime macro-indicators. This approach -- innovative in analyses on health trends -- handles theidentification problem and explains mechanisms underlying cohort and period effects. The modeling approach is compared with graphical and two-factors methods. The methods are applied on Dutch trends in functional limitations using data from the Longitudinal Aging Study Amsterdam. We argue that the modeling approach is a highly appropriate alternative. We find that theprevalence of functional limitations increases in the nineteen-nineties due to adverse cohort and period effects. Cohort effects are explained by hygienic and socio-economic conditions during childhood and period effects by restrictions in availability of health care services. Classification-JEL: I1; C4 Keywords: Age-Period-Cohort Analysis; Trends in Functional Limitations; Aging File-Url: https://papers.tinbergen.nl/02120.pdf File-Format: application/pdf File-Size: 510478 bytes Handle: RePEc:tin:wpaper:20020120