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Economic Evaluation of Mental Health Interventions for Children and Adolescents

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To my sons:

Henry and Edvard

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Örebro Studies in Economics 35

MATTIAS PERSSON

Economic Evaluation of Mental Health Interventions for Children and Adolescents:

the Case of Sweden

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© Mattias Persson, 2016

Title: Economic Evaluation of Mental Health Interventions for Children and Adolescents: the Case of Sweden

Publisher: Örebro University 2016 www.oru.se/publikationer-avhandlingar

Print: Örebro University, Repro 11/2016 ISSN1651-8896

ISBN978-91-7529-169-7

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Abstract

Mattias Persson (2016): Economic Evaluation of Mental Health Interventions for Children and Adolescents: the Case of Sweden. Örebro Studies in Eco- nomics 35

The focus of this thesis is economic evaluations of programs and interven- tions regarding children and adolescents with mental health issues, victim- ization, and intellectual disabilities (ID). The first paper examines a poten- tial link between mental health issues among adolescent and the class-size of the school class they are enrolled in. The class-size and schools’ financial resources is often at the center of policy debates. Our results suggest that there is no evidence that larger classes have negative impact on the mental health for adolescents in a Swedish context. The second paper investigate the societal willingness to pay (WTP) to reduce bullying in Swedish schools. The results suggest that the tax payers WTP is about 5 SEK and the societal is about 600 000 SEK per reduced bullying victim. This value of WTP could be used as a measure to evaluate different investments in anti-bullying programs and efforts to reduce the bullying in schools. The third paper estimates the cost-effectiveness of one recently introduced anti- bullying program, the Finnish KiVa program, one of the few evidence based programs in the world. Based on a decision-analytic model, the re- sults indicate that the KiVa program is a cost-effective program that has a cost per reduced victim well below the WTP as estimated in the second paper as documented above. The fourth paper evaluates, from the munic- ipality perspective, the effects of investing in a SE program compared to

“business as usual” in order to increase the likelihood for gaining regular employment for the pupils with ID. The results indicate that it takes 9 years before breakeven is reached if investing in the SE program. The fifth paper conducts a decision-analytic economic evaluation of the SE program using simulations to assess the effects over the full life-course. The results suggest that from a societal perspective the program is cost-effective ten years after the investment and by then has generated a benefit of 17 000 SEK per individual.

Keywords: Children, adolescents, mental health, bullying, economic evalu- ation, intellectual disability, transition

Mattias Persson. Örebro University School of Business, SE-701 82, Sweden, mattias.persson@oru.se

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Acknowledgements

When I began this journey in 2008 as a PhD student in economics at Örebro University, I had another view of how this journey would be. But, then something called life came in between and changed the pathway of this jour- ney. After I received my PhLic in 2010, I worked for four years before re- turning to Örebro University in 2015 to finalize a PhD in economics. As this journey comes to an end, some will continue and others start soon.

Now I want to take the opportunity to thank my supervisors, Mikael Svensson and Lars Hultkrantz. Thank you for all your help, comments, sug- gestions and discussions, as well as reading numerous manuscripts. I am also grateful for all the knowledge you two have given me about economics in general, but more specific economic evaluation.

To Mikael, you have inspired and always been there for me, answering my questions and challenged my choices. I am also glad that you encouraged me to take courses abroad for influential lecturers both in methodology and application. I see you not only as my supervisor, but also my friend and it has been relieving to be able to take a beer with you after a hectic work day and talk about other things than research.

To Lars, I am also thankful that you accepted me as a PhD student in 2008 and that you introduced me to the young PhD, Mikael, which had an interesting project about bullying and mental health issues that I could be a part of.

To Daniela Andrén, for all the care, encouragement and solutions on my questions in microeconometrics. I also want to thank you for your time as a supervisor during the PhLic.

I should not forget my PhD colleges, past and present, for being there with both encouragement and sharing experience of the PhD studies. And, as well as all other colleges at Örebro University who have crossed my path- way during my years. Especially I want to thank Elin Vimefall for answering all my silly questions and for all our chats during breaks from work. Emelie Värja, for all our chats to get breaks from work, and listen to all my differ- ent ideas and questions. To Johan Karlsson for being such a happy and positive individual, and all discussions about everything and nothing.

To Fredrik Kopsch, which has been there throughout the whole higher education; from Luleå to Toledo, and as well for some courses during the PhD. Now, I hope that we could now apply for research grants together for all those great ideas we figured out in Toledo.

Last but not least I have to thank my family. Especially my two sons;

Henry and Edvard, which have me drop the books and research from time

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to time, to play or read for them. It has been a healthy change of focus and joyful, and now I got more time for this. And I should not forget their amaz- ing mother and my best friend Anna, which have supported me through this journey and made it possible for me to take courses abroad several times during these last two years.

Örebro, 2016

Mattias Persson

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As the first study, estimate individual and societal willingness to pay to reduce school bullyig victimization

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Publications in the series Örebro Studies in Economics

1. Lundin, Nannan (2003): International Competition and Firm- Level Performance. – Microeconomic Evidence from Swedish Manufacturing in the 1990s. Licentiate thesis.

2. Yun, Lihong (2004): Productivity and Inter-Industry Wages.

Licentiate thesis.

3. Poldahl, Andreas (2004): Productivity and R&D. Evidence from Swedish Firm Level Data. Licentiate thesis.

4. Lundin, Nannan (2004): Impact of International Competition on Swedish Manufacturing. Individual and Firm-Level Evidence from 1990s.

5. Karpaty, Patrik (2004): Does Foreign Ownership Matter?

Evidence from Swedish firm Level Data. Licentiate thesis.

6. Yun, Lihong (2005): Labour Productivity and International Trade.

7. Poldahl, Andreas (2005): The impact of competition and innovation on firm performance.

8. Karpaty, Patrik (2006): Does Foreign Ownership Matter?

Multinational Firms, Productivity and Spillovers.

9. Bandick, Roger (2005): Wages and employment in multinationals.

Microeconomic evidence from Swedish manufacturing.

Licentiate thesis.

10. Bångman, Gunnel (2006): Equity in welfare evaluations – The rationale for and effects of distributional weighting.

11. Aranki, Ted (2006) Wages, unemployment and regional differences – empirical studies of the Palestinian labor market.

12. Svantesson, Elisabeth (2006): “Determinants of Immigrants’

Early Labour Market Integration” (Essay 1). “Do Introduction Programs Affect the Probability for Immigrants getting Work?”

(Essay 2).

13. Lindberg, Gunnar (2006): Valuation and Pricing of Traffic Safety.

14. Svensson, Mikael (2007): What is a Life Worth? Methodological Issues in Estimating the Value of a Statistical Life.

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15. Bandick, Roger (2008): Multinationals, Employment and Wages.

Microeconomics Evidence from Swedish Manufacturing.

17. Krüger, Niclas A. (2009): Infrastructure Investment Planning under Uncertainty.

18. Swärdh, Jan-Erik (2009): Commuting Time Choice and the Value of Travel Time.

19. Bohlin, Lars (2010): Taxation of Intermediate Goods.

A CGE Analysis.

20. Arvidsson, Sara (2010): Essays on Asymmetric Information in the Automobile Insurance Market.

21. Sund, Björn (2010): Economic evaluation, value of life, stated preference methodology and determinants of risks.

22. Ahlberg, Joakim (2012): Multi-unit common value auctions:

Theory and experiments.

23. Lodefalk, Magnus (2013): Tackling Barriers to Firm Trade.

Liberalisation, Migration, and Servicification.

24. Liu, Xing (2013): Transport and Environmental Incentive Policy Instruments – Effects and Interactions.

25. Elert, Niklas (2014): Economic Dynamism.

26. Ekblad, Kristin (2014): The Economics of Sickness Absence – Social Interaction, Local Cultures and Working Conditions.

27. Yarmukhamedov, Sherzod (2014): A study of asymmetric information problems in vehicle insurance.

28. Vimefall, Elin (2015): Essays on Child Education, Child Labor and the Agricultural Economy.

29 Stake, Johan Y. (2015): Essays on quality evaluation and bidding behavior in public procurement auctions.

30. Odolinski, Kristofer (2015): Reforming a publicly owned monopoly:

costs and incentives in railway maintenance.

31. Sayeed, Yeasmin (2015): Child Marriage, Human Development and Welfare. Using Public Spending, Taxation and Conditional Cash Transfers as Policy Instruments.

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32. Thureson, Disa (2016): Cost- benefit analysis of climate policy and long term public investments.

33. Värja, Emelie (2016): Local public expenditure: Equality, quality and growth.

34. Widell, Lars M. (2016): Essays in International Trade: Measurement, Product Quality, Input-Output Modelling and Tax Evasion.

35. Persson, Mattias (2016): Economic Evaluation of Mental Health Interventions for Children and Adolescents: the Case of Sweden.

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