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Economics and mental health: the current scenario

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  • Knapp, Martin
  • Wong, Gloria

Abstract

Economics and mental health are intertwined. Apart from the accumulating evidence of the huge economic impacts of mental ill-health, and the growing recognition of the effects that economic circumstances can exert on mental health, governments and other budget-holders are putting increasing emphasis on economic data to support their decisions. Here we consider how economic evaluation (including cost-effectiveness analysis, cost-utility analysis and related techniques) can contribute evidence to inform the development of mental health policy strategies, and to identify some consequences at the treatment or care level that are of relevance to service providers and funding bodies. We provide an update and reflection on economic evidence relating to mental health using a lifespan perspective, analyzing costs and outcomes to shed light on a range of pressing issues. The past 30 years have witnessed a rapid growth in mental health economics, but major knowledge gaps remain. Across the lifespan, clearer evidence exists in the areas of perinatal depression identification-plus-treatment; risk-reduction of mental health problems in childhood and adolescence; scaling up treatment, particularly psychotherapy, for depression; community-based early intervention and employment support for psychosis; and cognitive stimulation and multicomponent carer interventions for dementia. From this discussion, we pull out the main challenges that are faced when trying to take evidence from research and translating it into policy or practice recommendations, and from there to actual implementation in terms of better treatment and care.

Suggested Citation

  • Knapp, Martin & Wong, Gloria, 2020. "Economics and mental health: the current scenario," LSE Research Online Documents on Economics 102717, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:102717
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    File URL: http://eprints.lse.ac.uk/102717/
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    References listed on IDEAS

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    1. Knapp, Martin & McDaid, David & Parsonage, Michael, 2011. "Mental health promotion and mental illness prevention: the economic case," LSE Research Online Documents on Economics 32311, London School of Economics and Political Science, LSE Library.
    2. Brown, Heather & D'Amico, Francesco & Knapp, Martin & Orrell, Martin & Rehill, Amritpal & Vale, Luke & Robinson, Louise, 2019. "A cost effectiveness analysis of maintenance cognitive stimulation therapy (MCST) for people with dementia: examining the influence of cognitive ability and living arrangements," LSE Research Online Documents on Economics 100841, London School of Economics and Political Science, LSE Library.
    3. Drummond, Michael F. & Sculpher, Mark J. & Claxton, Karl & Stoddart, Greg L. & Torrance, George W., 2015. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 4, number 9780199665884.
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    Cited by:

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    2. Karen Arulsamy, 2022. "The impact of adolescent psychological distress on access and participation in employer sponsored pension plans in the US," Working Papers 202201, Geary Institute, University College Dublin.
    3. Patricia Gual-Montolio & Irene Jaén & Verónica Martínez-Borba & Diana Castilla & Carlos Suso-Ribera, 2022. "Using Artificial Intelligence to Enhance Ongoing Psychological Interventions for Emotional Problems in Real- or Close to Real-Time: A Systematic Review," IJERPH, MDPI, vol. 19(13), pages 1-21, June.
    4. Vincent Vandenberghe, 2021. "Work beyond the age of 50. What role for mental versus physical health?," LABOUR, CEIS, vol. 35(3), pages 311-347, September.
    5. Vincent Vandenberghe, 2020. "The Rather Limited Role Of Mental Ill Health In Driving Work Beyond 50," LIDAM Discussion Papers IRES 2020020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Arulsamy, Karen & Delaney, Liam, 2022. "The impact of automatic enrolment on the mental health gap in pension participation: Evidence from the UK," Journal of Health Economics, Elsevier, vol. 86(C).
    7. Gaia Sampogna & Maurizio Pompili & Andrea Fiorillo, 2021. "Mental Health in the Time of COVID-19 Pandemic: A Worldwide Perspective," IJERPH, MDPI, vol. 19(1), pages 1-5, December.
    8. Long Khanh-Dao Le & Sophy Shih & Scott Richards-Jones & Mary Lou Chatterton & Lidia Engel & Christopher Stevenson & David Lawrence & Genevieve Pepin & Cathrine Mihalopoulos, 2021. "The cost of Medicare-funded medical and pharmaceutical services for mental disorders in children and adolescents in Australia," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-16, April.
    9. Avdic, Daniel & de New, Sonja C. & Kamhöfer, Daniel A., 2021. "Economic downturns and mental health in Germany," European Economic Review, Elsevier, vol. 140(C).
    10. Alexandra Schosser & Birgit Senft & Marion Rauner, 2022. "The benefit of an ambulant psychiatric rehabilitation program in Vienna, Austria: an uncontrolled repeated measures study," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(1), pages 19-48, March.
    11. Mara Lastretti & Manuela Tomai & Natalia Visalli & Francesco Chiaramonte & Renata Tambelli & Marco Lauriola, 2021. "An Integrated Medical-Psychological Approach in the Routine Care of Patients with Type 2 Diabetes: A Pilot Study to Explore the Clinical and Economic Sustainability of the Healthcare Intervention," Sustainability, MDPI, vol. 13(23), pages 1-15, November.
    12. Minna Anttila & Milla Ylitalo & Marjo H. Kurki & Kirsi Hipp & Maritta Välimäki, 2020. "School Nurses’ Perceptions, Learning Needs and Developmental Suggestions for Mental Health Promotion: Focus Group Interviews," IJERPH, MDPI, vol. 17(24), pages 1-14, December.
    13. Ángela Carbonell & Sylvia Georgieva & José-Javier Navarro-Pérez & Mercedes Botija, 2023. "From Social Rejection to Welfare Oblivion: Health and Mental Health in Juvenile Justice in Brazil, Colombia and Spain," IJERPH, MDPI, vol. 20(11), pages 1-18, May.
    14. Daniel Avdic & Sonja C. de New & Daniel A. Kamhöfer, 2020. "Economic Downturns and Mental Wellbeing," SOEPpapers on Multidisciplinary Panel Data Research 1081, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Megumi Hazumi & Kentaro Usuda & Emi Okazaki & Mayumi Kataoka & Daisuke Nishi, 2022. "Differences in the Course of Depression and Anxiety after COVID-19 Infection between Recovered Patients with and without a Psychiatric History: A Cross-Sectional Study," IJERPH, MDPI, vol. 19(18), pages 1-11, September.
    16. Gaia Sampogna & Maurizio Pompili & Andrea Fiorillo, 2022. "The Short-Term Consequences of COVID-19 on Mental Health: State of the Art from Available Studies," IJERPH, MDPI, vol. 19(23), pages 1-5, November.

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    More about this item

    Keywords

    Economic evaluation; cost-benefit; cost-effectiveness; cost-utility; dementia; depression; mental health policy; psychosis; return on investment;
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    JEL classification:

    • N0 - Economic History - - General

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