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Longitudinal Study: HILDA
Title: Healthy mind in healthy body: Identifying the causal effect of mental health on physical health
Authors: Yang, Liyuan
Zikos, Vasileios
Publication Date: Apr-2022
Pages: 110358
Keywords: Mental health
Physical health
Panel data
Abstract: This paper examines whether mental health has a causal impact on physical health. Allowing for individual-level fixed effects, our study aims to overcome some of the main technical difficulties encountered in the literature: two-way causality, unobservable confounders, and measurement error. For identification we implement an instrumental variable approach that exploits the recent death of a close friend as a source of exogenous variation in mental health. Using large-scale panel data from Australia, we find robust evidence that mental health has a positive, causal effect on physical health.
DOI: 10.1016/j.econlet.2022.110358
Research collection: Journal Articles
Appears in Collections:Journal Articles

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