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Hilton Atlanta, 224
Hosted By:
Association of Christian Economists
moderate depression or anxiety: psychotherapy and medication. The medical literature
and our analysis suggests that in many cases psychotherapy, or a combination of therapy
and medication, is more curative than medication alone. However, few individuals choose
to use psychotherapy. We develop and estimate a dynamic model in which individuals
make sequential medical treatment and labor supply decisions while jointly managing mental
health and human capital. The results shed light on the relative importance of several
drawbacks to psychotherapy that explain patients’ reluctance to use it: (1) therapy has high
time costs, which vary with an individual’s opportunity cost of time and flexibility of the
work schedule; (2) therapy is less standardized than medication, which results in uncertainty
about it’s productivity for a given individual; and (3) therapy is expensive. The estimated
model is used to simulate the impacts of counterfactual policies that alter the costs associated
with psychotherapy.
People Helping People: Time as a Unique Input into Well Being
Paper Session
Saturday, Jan. 5, 2019 10:15 AM - 12:15 PM
- Chair: Sarah Hamersma, Syracuse University
Volunteer Now or Later: The Effects of Effort Time Allocation on Donations
Abstract
We study how effort time allocations, where effort is tied directly to charitable contributions, affect donations. Consistent with our theoretical predictions, we find that flexibility in choosing when to allocate effort donations increases overall donations and decreases the probability to refuse to donate. People who donate through effort show a lower rate of dynamically inconsistent choices compared to monetary giving. The results are consistent with warm glow giving and provide support to the idea that effort donations (i.e., volunteering) differ, in fundamental ways, from monetary charitable donations.Mental Health, Human Capital and Labor Market Outcomes
Abstract
There are two primary treatment alternatives available to those with mild tomoderate depression or anxiety: psychotherapy and medication. The medical literature
and our analysis suggests that in many cases psychotherapy, or a combination of therapy
and medication, is more curative than medication alone. However, few individuals choose
to use psychotherapy. We develop and estimate a dynamic model in which individuals
make sequential medical treatment and labor supply decisions while jointly managing mental
health and human capital. The results shed light on the relative importance of several
drawbacks to psychotherapy that explain patients’ reluctance to use it: (1) therapy has high
time costs, which vary with an individual’s opportunity cost of time and flexibility of the
work schedule; (2) therapy is less standardized than medication, which results in uncertainty
about it’s productivity for a given individual; and (3) therapy is expensive. The estimated
model is used to simulate the impacts of counterfactual policies that alter the costs associated
with psychotherapy.
Discussant(s)
Timothy M. Diette
,
Washington and Lee University
Sara Helms McCarty
,
Samford University
Matthew Harris
,
University of Tennessee-Knoxville
JEL Classifications
- I0 - General
- C7 - Game Theory and Bargaining Theory