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The causal impact of mental health on tobacco and alcohol consumption: An instrumental variables approach

Author

Listed:
  • Mitrou, Francis
  • Nguyen, Ha Trong
  • Le, Huong Thu
  • Zubrick, Stephen R.
Abstract
The reciprocal relationship between psychiatric and substance use disorders is well-known, yet it remains largely unknown whether mental health morbidity causally leads to addictive behaviours. This paper utilises a fixed effects instrumental variables model, which is identified by time-varying sources of plausibly exogenous variations in mental health, and a nationally representative panel dataset from Australia to present robust evidence on the causal impact of mental distress on cigarette smoking and alcohol drinking behaviours. We find that mental distress significantly increases the prevalence and intensity of either cigarette or alcohol consumption. Further analysis reveals that mental distress also substantially increases household monetary expenditures on either tobacco or alcohol. The impact is greater for lower educated individuals or children of smokers, and is slightly higher for males. Our findings highlight the importance of mental health screening and treatment programs, especially among lower educated individuals or children of smokers, to assist in the prevention of addictive activities.

Suggested Citation

  • Mitrou, Francis & Nguyen, Ha Trong & Le, Huong Thu & Zubrick, Stephen R., 2023. "The causal impact of mental health on tobacco and alcohol consumption: An instrumental variables approach," GLO Discussion Paper Series 1316, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1316
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    File URL: https://www.econstor.eu/bitstream/10419/273674/1/GLO-DP-1316.pdf
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    References listed on IDEAS

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    1. Huong Thu Le & Ha Trong Nguyen, 2017. "Parental health and children's cognitive and noncognitive development: New evidence from the longitudinal survey of Australian children," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1767-1788, December.
    2. Nguyen, Ha Trong & Mitrou, Francis & Taylor, Catherine L. & Zubrick, Stephen R., 2020. "Does retirement lead to life satisfaction? Causal evidence from fixed effect instrumental variable models," GLO Discussion Paper Series 536, Global Labor Organization (GLO).
    3. David Johnston & Carol Propper & Stephen Pudney & Michael Shields, 2014. "Child Mental Health And Educational Attainment: Multiple Observers And The Measurement Error Problem," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(6), pages 880-900, September.
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    6. Huong Thu Le & Ha Trong Nguyen, 2018. "The Impact of Maternal Mental Health Shocks on Child Health: Estimates from Fixed-Effects Instrumental Variables Models for Two Cohorts of Australian Children," American Journal of Health Economics, University of Chicago Press, vol. 4(2), pages 185-225, Spring.
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    12. Ha Trong Nguyen & Huong Thu Le & Luke B Connelly, 2021. "Who's declining the “free lunch”? New evidence from the uptake of public child dental benefits," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 270-288, February.
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    1. Artur Nagapetyan & Alexander Drozd & Dmitry Subbotovsky, 2023. "How to Determine the Optimal Number of Cardiologists in a Region?," Mathematics, MDPI, vol. 11(21), pages 1-23, October.

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    More about this item

    Keywords

    Mental Health; Depression; Smoking; Drinking; Alcohol Addiction; Instrumental Variables;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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