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The causal impact of mental health on tobacco and alcohol consumption: an instrumental variables approach

Author

Listed:
  • Francis Mitrou

    (Telethon Kids Institute
    The University of Western Australia)

  • Ha Trong Nguyen

    (Telethon Kids Institute
    The University of Western Australia)

  • Huong Thu Le

    (Telethon Kids Institute
    The University of Western Australia)

  • Stephen R. Zubrick

    (Telethon Kids Institute
    The University of Western Australia)

Abstract

The reciprocal relationship between psychiatric and substance use disorders is well-known, yet it remains largely unknown whether mental health morbidity causally leads to addictive behaviours. This paper utilises a fixed effects instrumental variables model, which is identified by time-varying sources of plausibly exogenous variations in mental health, and a nationally representative panel dataset from Australia to present robust evidence on the causal impact of mental distress on cigarette smoking and alcohol drinking behaviours. We find that mental distress significantly increases the prevalence and intensity of either cigarette or alcohol consumption. Further analysis reveals that mental distress also substantially increases household monetary expenditures on either tobacco or alcohol. The impact is greater for lower educated individuals or children of smokers, and is slightly higher for males. Our findings highlight the importance of mental health screening and treatment programs, especially among lower educated individuals or children of smokers, to assist in the prevention of addictive activities.

Suggested Citation

  • Francis Mitrou & Ha Trong Nguyen & Huong Thu Le & Stephen R. Zubrick, 2024. "The causal impact of mental health on tobacco and alcohol consumption: an instrumental variables approach," Empirical Economics, Springer, vol. 66(3), pages 1287-1310, March.
    • Handle: RePEc:spr:empeco:v:66:y:2024:i:3:d:10.1007_s00181-023-02483-x
    DOI: 10.1007/s00181-023-02483-x
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    More about this item

    Keywords

    Mental health; Depression; Smoking; Drinking; Alcohol addiction; Instrumental variables;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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