A behavioral economic analysis of mental health
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Abstract
The subject matter of this dissertation is the economic analysis of the impacts of mental illnesses, especially addictions, and interventions into public health policy on individual behavior, on the distribution of mental health states and on public welfare. Globally, mental illnesses are highly prevalent, generate enormous economic costs and are accompanied by a high degree of psychological strain. Moreover, interventions into public health policy are a subject of public interest, what emphasizes the relevance of the topic. The objective of this work is to develop an understanding for the determinants of the distribution of mental health states and their dynamics in order to derive quantitative predictions. Optimization problems with state-dependent utility functions turned out to be an appropriate structure for the analysis on the micro level. Therefore they are analyzed in the second chapter. The third chapter deals with mental illnesses in general and rather abstract from particular clinical symptoms. It also comprises the formal analysis on the macro level as well as a calibration with OECD data and the simulation of policy interventions. Chapter 4 focuses on addiction in particular, while recovery is endogenous. It also covers a welfare analysis and an application on binge drinking behavior.