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The Effect of Mental Illness on U.S. County Economic Growth

Author

Listed:
  • Meri Davlasheridze

    (Texas A&M University at Galveston)

  • Stephan Goetz

    (Pennsylvania State University)

  • Yicheol Han

    (Pennsylvania State University)

Abstract

Poor mental health creates significant economic costs, in addition to human suffering, and is a growing world-wide concern, especially with an aging population. To estimate the cost of this disease in the U.S., we adopt a conventional economic growth model and include the number of poor mental health days (PMHD) as a right-hand side variable. Controlling for various county-level variables associated with income growth, our results suggest that one additional PMHD is associated with a 1.84 percentage point lower per capita real income growth rate, or $53 billion less total annual income, across the U.S. between 2008 and 2014. This effect is in addition to the income losses associated with the Great Recession.

Suggested Citation

  • Meri Davlasheridze & Stephan Goetz & Yicheol Han, 2018. "The Effect of Mental Illness on U.S. County Economic Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 48(2), pages 155-171, Summer.
    • Handle: RePEc:rre:publsh:v48:y:2018:i:2:p:155-171
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    More about this item

    Keywords

    mental health; per capita income growth;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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