Abstract
This study analyzes the dynamic interaction of an individual’s physical and mental health using the German Socio-Economic Panel and the Cross-National Equivalent File of Germany. Its main objective is to find a way to reduce people’s health expenditure by examining the magnitude of the interdependence between physical and mental health. For the analysis, this study develops a dynamic correlated random effects model. We create two aggregate health measures (aggregate physical health and aggregate mental health) with four submeasures each, which provides a better understanding of changes in an individual’s health status by capturing additional information that cannot be analyzed at the aggregate level. There is clear evidence that the persistence of a mental health condition is less than that of a physical health condition. Moreover, the impact of previous mental health on current physical health is greater than that of previous physical health on current mental health. This suggests that individuals can reduce their expenditures on physical health problems by focusing on the treatment of mental problems when they first arise. Finally, the Government’s attention and support toward mental health care would lead to a reduction in health expenditures and eventually improve the sustainability of the nation’s health system.
Highlights
Mental health is regarded as an integral and essential component of health, and the dimension of mental health is explicitly incorporated in the World Health Organization (WHO) definition of health, as evident from its constitution: “Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.”This definition suggests that mental health is more than the absence of mental disorders or disabilities, and that people should not take mental problems such as depression, loneliness, anxiety, and stress—that occur frequently—lightly.Some mental health problems are known as a risk factor for suicide, substance use, and several conditions such as stroke and coronary heart disease
Unlike previous studies, this study shows how two aggregate levels of health status are influenced by various variables, and explains how each aggregate level is affected via its lower-level measures
This is a meaningful contribution in that unlike previous studies, this study shows how two aggregate levels of health status are influenced by various variables, and explains how each aggregate level is affected via its lower-level measures, which could provide a better understanding of changes in an individual’s health status
Summary
Mental health is regarded as an integral and essential component of health, and the dimension of mental health is explicitly incorporated in the World Health Organization (WHO) definition of health, as evident from its constitution: “Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.”This definition suggests that mental health is more than the absence of mental disorders or disabilities, and that people should not take mental problems such as depression, loneliness, anxiety, and stress—that occur frequently—lightly.Some mental health problems are known as a risk factor for suicide, substance use, and several conditions such as stroke and coronary heart disease. Mental health is regarded as an integral and essential component of health, and the dimension of mental health is explicitly incorporated in the World Health Organization (WHO) definition of health, as evident from its constitution: “Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.”. This definition suggests that mental health is more than the absence of mental disorders or disabilities, and that people should not take mental problems such as depression, loneliness, anxiety, and stress—that occur frequently—lightly. Poor mental health may negatively affect relations with family or friends, and may sometimes lead to social crimes
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