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Related Experiment Videos

Good times make you sick.

Christopher J Ruhm1

  • 1Department of Economics, Bryan School, University of North Carolina Greensboro (UNCG), P.O. Box 26165, Greensboro, NC 27402-6165, USA. c.ruhm@uncg.edu

Journal of Health Economics
|July 5, 2003
PubMed
Summary
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Economic downturns improve physical health, particularly for prime-working age males, despite income gains. Mental health may worsen during economic expansions, contrasting physical well-being trends.

Area of Science:

  • Public Health
  • Health Economics
  • Sociology

Background:

  • Macroeconomic conditions significantly impact population health.
  • Understanding the relationship between economic cycles and health outcomes is crucial for public policy.
  • Previous research has yielded mixed results on the cyclicality of health.

Purpose of the Study:

  • To investigate the relationship between state macroeconomic conditions and individual health status.
  • To analyze how health status and medical care utilization vary with economic fluctuations.
  • To examine differential effects across demographic groups and health conditions.

Main Methods:

  • Utilized microdata from the 1972-1981 National Health Interview Surveys (NHIS).
  • Employed statistical models controlling for personal characteristics, location fixed-effects, general time effects, and state-specific time trends.

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  • Analyzed variations in physical and mental health, and medical care utilization.

    • Main Results:

    • Observed a counter-cyclical variation in physical health, meaning health improves during economic downturns.
    • This effect was most pronounced in prime-working age individuals, employed persons, and males.
    • Negative health effects of economic expansions persisted over time, were larger for acute ailments, and occurred despite income protection and potential increases in medical care use. Mental health showed a potential pro-cyclical trend.

    Conclusions:

    • Economic cycles have a discernible impact on physical health, with improvements during recessions.
    • The findings highlight the complex interplay between economic conditions, health status, and healthcare utilization.
    • Policy interventions may need to consider the differential impacts of economic cycles on various aspects of health and demographic groups.