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Economics and mental health: the current scenario

Author

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  • Knapp, Martin
  • Wong, Gloria

Abstract

Economics and mental health are intertwined. Apart from the accumulating evidence of the huge economic impacts of mental ill-health, and the growing recognition of the effects that economic circumstances can exert on mental health, governments and other budget-holders are putting increasing emphasis on economic data to support their decisions. Here we consider how economic evaluation (including cost-effectiveness analysis, cost-utility analysis and related techniques) can contribute evidence to inform the development of mental health policy strategies, and to identify some consequences at the treatment or care level that are of relevance to service providers and funding bodies. We provide an update and reflection on economic evidence relating to mental health using a lifespan perspective, analyzing costs and outcomes to shed light on a range of pressing issues. The past 30 years have witnessed a rapid growth in mental health economics, but major knowledge gaps remain. Across the lifespan, clearer evidence exists in the areas of perinatal depression identification-plus-treatment; risk-reduction of mental health problems in childhood and adolescence; scaling up treatment, particularly psychotherapy, for depression; community-based early intervention and employment support for psychosis; and cognitive stimulation and multicomponent carer interventions for dementia. From this discussion, we pull out the main challenges that are faced when trying to take evidence from research and translating it into policy or practice recommendations, and from there to actual implementation in terms of better treatment and care.

Suggested Citation

  • Knapp, Martin & Wong, Gloria, 2020. "Economics and mental health: the current scenario," LSE Research Online Documents on Economics 102717, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:102717
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    File URL: http://eprints.lse.ac.uk/102717/
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    References listed on IDEAS

    as
    1. Knapp, Martin & McDaid, David & Parsonage, Michael, 2011. "Mental health promotion and mental illness prevention: the economic case," LSE Research Online Documents on Economics 32311, London School of Economics and Political Science, LSE Library.
    2. Drummond, Michael F. & Sculpher, Mark J. & Claxton, Karl & Stoddart, Greg L. & Torrance, George W., 2015. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 4, number 9780199665884, Decembrie.
    3. Brown, Heather & D'Amico, Francesco & Knapp, Martin & Orrell, Martin & Rehill, Amritpal & Vale, Luke & Robinson, Louise, 2019. "A cost effectiveness analysis of maintenance cognitive stimulation therapy (MCST) for people with dementia: examining the influence of cognitive ability and living arrangements," LSE Research Online Documents on Economics 100841, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic evaluation; cost-benefit; cost-effectiveness; cost-utility; dementia; depression; mental health policy; psychosis; return on investment;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General

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