Economic Burden of Chronic Diseases in Japan

This white paper presents an analysis of the economic burden associated with chronic diseases, specifically depression and Alzheimer’s disease (AD), in Japan using a computable general equilibrium (CGE) model. The study quantifies both direct and indirect macroeconomic effects, focusing on age-specific prevalence and the impact on productivity and gross domestic product (GDP) within an aging society. It discusses the rising costs of long-term care and the necessity for effective care models, especially given Japan's demographic challenges. The findings indicate significant variations in GDP impact across different sectors, with potential GDP increases estimated at $3.22 billion from eliminating new cases of depression and $1.94 billion from transitioning to professional caregiving for AD. The paper emphasizes the limitations of traditional partial equilibrium models and advocates for the use of CGE models to capture the comprehensive economic impacts of health conditions, providing a more detailed understanding of the economic consequences of chronic diseases.