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Integrating Mental Health in Welfare Evaluation: An Empirical Application

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Author Info
Das, Sanghamitra
Mukhopadhyay, Abhiroop
Ray, Tridip

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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 HIV 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 University Library of Munich, Germany in its series MPRA Paper with number 9945.

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Date of creation: 16 Aug 2007
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Handle: RePEc:pra:mprapa:9945

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Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
I10 - Health, Education, and Welfare - - Health - - - General

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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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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  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)
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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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