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Integrating mental health in welfare evaluation: An Empirical application

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Author Info
Sanghamitra Das (Indian Statistical Institute, New Delhi)
Abhiroop Mukhopadhyay () (Indian Statistical Institute, New Delhi)
Tridip Ray () (Indian Statistical Institute, New Delhi)

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Abstract

This paper presents simple measures of individual and family mental health indices based on axiomatic foundations and integrates mental health into a neoclassical model that allows for proper substitution possibilities in the family preferences and quantifies its significance in family utility. We find that mental health effects are far more important than the effect of consumption or children's schooling in determining family utility. We illustrate the usefulness of our approach by considering the case of HIV/AIDS experience in India. Using our approach, we find that while there are no significant differences in per capita consumption and schooling between HIV and NON HOV families, the cost of HIV/AIDS are still considerably large due to the inclusion of mental health. Integrating mental health in a utility maximization framework helps us quantify these costs.

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Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 07-06.

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Length: 27 pages
Date of creation: Aug 2007
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Handle: RePEc:ind:isipdp:07-06

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  2. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, 01. [Downloadable!] (restricted)
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  3. David G. Blanchflower & Andrew J. Oswald, 2007. "Is Well-Being U-Shaped over the Life Cycle?," IZA Discussion Papers 3075, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
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  5. John F. Helliwell, 2006. "Well-Being, Social Capital and Public Policy: What's New?," Economic Journal, Royal Economic Society, vol. 116(510), pages C34-C45, 03. [Downloadable!] (restricted)
  6. Abhijit Banerjee & Angus Deaton & Esther Duflo, 2004. "Wealth, Health, and Health Services in Rural Rajasthan," Natural Field Experiments 0017, The Field Experiments Website. [Downloadable!]
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  7. Daniel Kahneman & Alan B. Krueger & David Schkade & Norbert Schwarz & Arthur A. Stone, 2006. "Would You Be Happier If You Were Richer? A Focusing Illusion," Working Papers 77, Princeton University, Department of Economics, Center for Economic Policy Studies.. [Downloadable!]
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  1. Das, Sanghamitra & Mukhopadhyay, Abhiroop & Ray, Tridip, 2008. "Negative Reality of the HIV Positives: Evaluating Welfare Loss in a Low Prevalence Country," MPRA Paper 9946, University Library of Munich, Germany. [Downloadable!]
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