Chapter 56: ESTIMATING PERMANENT INCOME USING INDICATOR VARIABLES.

Chapter 56 of the book "Health Systems Performance Assessment" is presented. It discusses the use of the dichotomous variant of the hierarchical ordered probit (DIHOPIT) model in measuring the permanent income of respondents in a health survey. Some of the variables used to measure permanent income include age of household, number of household adults and occupation of household head. Statistical output from a DIHOPIT survey of Pakistani and Peruvian households is presented.