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The Economic Impact of Depression Treatment in India: Evidence from Community-Based Provision of Pharmacotherapy

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  • Manuela Angelucci
  • Daniel Bennett

Abstract

This study evaluates the impact of depression treatment on economic behavior in Karnataka, India. We cross-randomize pharmacotherapy and livelihoods assistance among 1,000 depressed adults and evaluate impacts on depression severity, socioeconomic outcomes, and several potential pathways. When combined, the interventions reduce depression severity, with benefits that persist after treatment concludes. Pharmacotherapy alone has a weaker effect that is only marginally significant and dissipates sooner. Depression treatment does not significantly increase earnings, consumption, or human capital investment in children.

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  • Manuela Angelucci & Daniel Bennett, 2024. "The Economic Impact of Depression Treatment in India: Evidence from Community-Based Provision of Pharmacotherapy," American Economic Review, American Economic Association, vol. 114(1), pages 169-198, January.
    • Handle: RePEc:aea:aecrev:v:114:y:2024:i:1:p:169-98
    DOI: 10.1257/aer.20210687
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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