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An economic heory of depression and its impact on health behavior and longevity

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  • Strulik, Holger

Abstract

In this paper, I introduce depression to the economics of human health and aging. Based on studies from happiness research, depression is conceptualized as a drastic loss of utility and value of life (life satisfaction) for unchanged fundamentals. The model is used to explain how untreated depression leads to unhealthy behavior and adverse health outcomes: depressed individuals are predicted to save less, invest less in their health, consume more unhealthy goods, and exercise less. As a result, they age faster and die earlier than non-depressed individuals. I calibrate the model for an average American and discus the socioeconomic gradient of health and depression as well as the hump-shaped association of antidepressant use with age. Delays in treatment for depression in young adulthood are predicted to have significant repercussions on late-life health outcomes and longevity.

Suggested Citation

  • Strulik, Holger, 2018. "An economic heory of depression and its impact on health behavior and longevity," University of Göttingen Working Papers in Economics 337, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:337
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    Cited by:

    1. Angelucci, Manuela & Bennett, Daniel M, 2021. "The Economic Impact of Depression Treatment in India," IZA Discussion Papers 14393, Institute of Labor Economics (IZA).
    2. Strulik, Holger, 2021. "From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity," Journal of Health Economics, Elsevier, vol. 76(C).
    3. Ringdal, Charlotte & Rootjes, Frank, 2022. "Depression and labor supply: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 45(C).
    4. Edward N. Okeke, 2021. "Money and my mind: Maternal cash transfers and mental health," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2879-2904, November.
    5. Hosoya, Kei, 2023. "Impact of infectious disease pandemics on individual lifetime consumption: An endogenous time preference approach," Journal of Macroeconomics, Elsevier, vol. 76(C).
    6. Miguel Sánchez-Romero & Alexia Prskawetz, 2020. "Optimal time allocation in active retirement," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(2), pages 401-424, June.

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    More about this item

    Keywords

    depression; depression therapy; health behavior; aging; longevity;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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