Economics and Mental Health / Richard G. Frank, Thomas G. McGuire.

Format:

Book

Author/Creator:

Frank, Richard G.

Contributor:

National Bureau of Economic Research.

McGuire, Thomas G.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7052.

NBER working paper series no. w7052

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1999.

Summary:

This paper is concerned with the economics of mental health. We argue that mental health economics is like health economics only more so: uncertainty and variation in treatments are greater; the assumption of patient self-interested behavior is more dubious; response to financial incentives such as insurance is exacerbated; the social consequences and external costs of illness are formidable. We elaborate on these statements and consider their implications throughout the chapter. Special characteristics' of mental illness and persons with mental illness are identified and related to observations on institutions paying for and providing mental health services. We show that adverse selection and moral hazard appear to hit mental health markets with special force. We discuss the emergence of new institutions within managed care that address long-standing problems in the sector. Finally, we trace the shifting role of government in this sector of the health economy.

Notes:

Print version record

March 1999.