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KMID : 1170320220280010064
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Korean Journal of Health Economics and Policy
2022 Volume.28 No. 1 p.64 ~ p.86
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The Causal Effect of Depression on Cognitive Function
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Lee Jung-Taek
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Abstract
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The objective of this study is to investigate the causal effect of depression on cognitive function. However, estimating the causal effect is empirically challenging. There exists confounding factors which affect both depression and cognitive function (Omitted Variable Bias). Moreover there is a possibility that cognitive function also influences depressive symptoms (Reverse Causality). To overcome the endogeneity caused by reverse causality or omitted variable bias, I used KLOSA( Korean Longitudinal Study of Ageing) to set up fixed effect model with instrumental variable (spousal death). I found that depression has an negative effect on poor cognitive function. An unit increase in CES-D10 score which measures respondent’s depressive symptoms decreases MMSE(mini-mental state examination) scoe by 0.6081.
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KEYWORD
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cognitive function, depressive symptoms, fixed effect model, instrumental variable
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