The Effects of ADHD Treatment Sequencing on Patient Health and Socioeconomic Outcomes

Anna Chorniy, Clemson University

Attention-deficit/hyperactivity disorder (ADHD) is a common chronic mental condition that impairs noncognitive abilities. I estimate the effects of various ADHD treatment strategies on human capital accumulation. In order to relieve symptoms of the condition and augment the stock of noncognitive skills, patients take ADHD medications and/or attend psychotherapy sessions. While on treatment, they learn planning and self-control skills that help them better manage their condition in the future. Poor noncognitive abilities may lead to such negative health and behavioral outcomes as teen pregnancy, contraction of STDs, injuries, and the onset of depression. Accumulation of ADHD "management" skills reduces the probability of adverse events in the future. Using SC Medicaid panel data for 2003-2012, I model dynamic treatment decisions and subsequent adverse outcomes. I use the estimates to simulate the cost of treatment to Medicaid under various treatment sequences, including the cost of poor adherence and late diagnosis.