Macroeconomic effects on mortality revealed by panel analysis with nonlinear trends

Details Macroeconomic effects on mortality revealed by panel analysis with nonlinear trends Macroeconomic effects on mortality revealed by panel analysis with nonlinear trends

2011-10-24

arxiv.org/abs/1110.5254v1

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Many investigations have used panel methods to study the relationships between fluctuations in economic activity and mortality. A broad consensus has emerged on the overall procyclical nature of mortality: perhaps counter-intuitively, mortality typically rises above its trend during expansions. This consensus has been tarnished by inconsistent reports on the specific age groups and mortality causes involved. We show that these inconsistencies result, in part, from the trend specifications used in previous panel models. A more precise and consistent picture emerges using panel techniques suitable for nonlinear trends. Analyzing data for the 50 US states from 1980 to 2006, we find procyclical mortality in all age groups. We find clear procyclical mortality due to respiratory disease and traffic injuries. Predominantly procyclical cardiovascular disease mortality and countercyclical suicide are subject to substantial state-to-state variation. Neither cancer nor homicide have significant macroeconomic association.

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