Estimating local prevalence of mental health problems

I present an improved methodology for estimating local prevalence rates using classical econometric methods. I provide information on the variation within national mental health surveys associated with ICD versus DSM coding. Conditional on the validity of national survey responses, I estimate precise and statistically significant models associated with binary measures of mental health diagnoses. I also present estimates from polychotomous discrete choice allowing for covariance in errors. Focusing on binary discrete measures, empirical results from NCS-R and NSADMHP are qualitatively similar though very different from NHIS. I speculate that, to a significant degree, this occurs because both NCS-R and NSADMHP rely on popular screening tools to mechanically diagnosis sample participants, while NHIS relies on self-diagnosis. I also discuss the effects on local prevalence estimates caused by unobserved community-specific effects. Finally, I use the results to make policy statements about the provision of public mental health services in central Virginia; the results document a severe shortage of services for people who are unlikely to be able to afford services in the private market.