Elizabeth Zhang

Spending for the Better: A Regression Analysis on how Mental Health Expenditures Can Improve GDP per capita

Started Sept. 12, 2022

Abstract or project description

According to the World Health Organization, one in every five people in the U.S. live with a mental disorder,

yet more than half of this group feels they have unmet needs. The American Psychiatric Association reported

that unresolved depression accounts for a 35% reduction in productivity, costing the economy $210.5 billion

annually. Continuing to neglect these conditions will have a devastating impact on these individuals’ quality

of life.

This research will identify whether government intervention through mental health expenditure is a potential

solution to improving labor productivity. By running a multiple linear regression, this study investigates

the relationship between federal mental health expenditures worldwide and subsequent countries’ GDP per

capita as a proxy for productivity. We expect as mental health expenditure increases, individual productivity,

and labor output will increase.