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Healthy mind in healthy body: Identifying the causal effect of mental health on physical health

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  • Yang, Liyuan
  • Zikos, Vasileios

Abstract

This paper examines whether mental health has a causal impact on physical health. Allowing for individual-level fixed effects, our study aims to overcome some of the main technical difficulties encountered in the literature: two-way causality, unobservable confounders, and measurement error. For identification we implement an instrumental variable approach that exploits the recent death of a close friend as a source of exogenous variation in mental health. Using large-scale panel data from Australia, we find robust evidence that mental health has a positive, causal effect on physical health.

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  • Yang, Liyuan & Zikos, Vasileios, 2022. "Healthy mind in healthy body: Identifying the causal effect of mental health on physical health," Economics Letters, Elsevier, vol. 213(C).
    • Handle: RePEc:eee:ecolet:v:213:y:2022:i:c:s0165176522000489
    DOI: 10.1016/j.econlet.2022.110358
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    Cited by:

    1. Yang, Liyuan & Zikos, Vasileios, 2023. "Mental health and smoking behavior," Economic Modelling, Elsevier, vol. 126(C).
    2. Dusanee Kesavayuth & Prompong Shangkhum & Vasileios Zikos, 2023. "Well‐being and doctor visits: The mediating role of a healthy diet," Australian Economic Papers, Wiley Blackwell, vol. 62(3), pages 501-523, September.

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    More about this item

    Keywords

    Mental health; Physical health; Panel data; HILDA;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • I10 - Health, Education, and Welfare - - Health - - - General

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