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Integrating Mental Health in Welfare Evaluation: An Empirical Application

Author

Listed:
  • Das Sanghamitra

    () (Indian Statistical Institute, New Delhi)

  • Mukhopadhyay Abhiroop

    () (Indian Statistical Institute, New Delhi)

  • Ray Tridip

    () (Indian Statistical Institute, New Delhi)

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 welfare loss from HIV/AIDS are still considerably large due to the inclusion of mental health. Integrating mental health in a utility maximization framework helps us quantify this welfare loss.

Suggested Citation

  • Das Sanghamitra & Mukhopadhyay Abhiroop & Ray Tridip, 2009. "Integrating Mental Health in Welfare Evaluation: An Empirical Application," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-25, September.
  • Handle: RePEc:bpj:bejeap:v:9:y:2009:i:1:n:41
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    References listed on IDEAS

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    9. 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..
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    Cited by:

    1. Sanghamitra Das & Abhiroop Mukhopadhyay & Tridip Ray, 2008. "Negative reality of the HIV positives: Evaluating welfare loss in a low prevalence country," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-02, Indian Statistical Institute, New Delhi, India.

    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I10 - Health, Education, and Welfare - - Health - - - General

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