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NOTE ON STATISTICAL ANALYSIS AND MICROSIMULATION FOR STUDYING LIVING ARRANGEMENTS AND INTERGENERATIONAL TRANSFERS

In the area of multivariate modelling of living arrangements and family transfers, we are inevitably led towards a desire, or need, for complexity in model specification and hence difficulty in estimation. This complexity arises because we generally wish to represent the situations of multiple actors (decision makers), for example, an older person or couple and their several children, and, possibly, the childrens parents-in-law as well. Furthermore, each actor may engage in one or more of a set of multiple activities of interest, including co-residence, financial transfers, or the provision of personal-care services. The spatial proximity of members of a kin group may be a further outcome of interest. Thus, we are faced with jointly modelling what may be an array of discrete and continuous (or truncated) outcomes of varying numbers over varying numbers of individual decision makers (when we look across observations in, say, a cross-sectional data file).