FINANCIAL IMPACT OF MENTAL ILLNESS AND HOW TO MEASURE THE CONSEQUENCES

Abstract

This article shows the economic impact of mental illness, as well as various cost-estimating approaches. To assess the burden of mental diseases, there are three different ways: the human capital, the economic growth and the value of statistical life approach. The first focuses on indirect and direct costs. Moreover, the effect of mental illness on economic development can only be approximated implicitly. Thus, the lack of production is primary estimated for somatic conditions compared to their corresponding quantity of disability-adjusted life years (DALYs). The total economic productivity drop associated with mental illnesses between 2011 and 2030 is rated to be US$16.3 trillion globally. Furthermore, the value of statistical life (VSL) method suggests that trade-offs between risks and capital should be used to assess the probability of injury or death due to psychiatric illness. This computation is equivalent to that of cardiovascular disease and bigger than that of cancer. However, greater activism is required to better the existing condition.