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Special Education Financing and ADHD Medications: A Bitter Pill to Swallow

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  • Melinda Sandler Morrill

Abstract

Accurate diagnosis of attention deficit/hyperactivity disorder (ADHD) in children is difficult because the major symptoms, inattentiveness and hyperactivity, can be exhibited by any child. This study finds evidence of systematic differences in diagnosis and treatment of ADHD due to third party financial incentives. In some states, due to the financing mechanism for special education, schools face a financial incentive to facilitate the identification of children with ADHD. Using variation in special education funding policies across states, we find that children living in states with financial incentives are about 15 percent more likely to report having ADHD and are about 22 percent more likely to be taking medication for ADHD. We provide support that these findings are causal by leveraging variation from two states that implemented policy changes during the time period studied.

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  • Melinda Sandler Morrill, 2018. "Special Education Financing and ADHD Medications: A Bitter Pill to Swallow," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(2), pages 384-402, March.
    • Handle: RePEc:wly:jpamgt:v:37:y:2018:i:2:p:384-402
    DOI: 10.1002/pam.22055
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    Cited by:

    1. Persson, Petra & Qiu, Xinyao & Rossin-Slater, Maya, 2021. "Family Spillover Effects of Marginal Diagnoses: The Case of ADHD," IZA Discussion Papers 14020, Institute of Labor Economics (IZA).
    2. Persson, Petra & Qiu, Xinyao & Rossin-Slater, Maya, 2021. "Family Spillover Effects of Marginal Diagnoses: The Case of ADHD," CEPR Discussion Papers 15660, C.E.P.R. Discussion Papers.
    3. Chorniy, Anna & Currie, Janet & Sonchak, Lyudmyla, 2018. "Exploding asthma and ADHD caseloads: The role of medicaid managed care," Journal of Health Economics, Elsevier, vol. 60(C), pages 1-15.
    4. Lindsey Rose Bullinger & Maithreyi Gopalan & Caitlin McPherran Lombardi, 2023. "Impacts of publicly funded health insurance for adults on children's academic achievement," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 860-884, January.
    5. Hampton, Matt & McNamara, Scott, 2022. "The impact of educational rewards on the diagnosis of autism spectrum disorder," Economics & Human Biology, Elsevier, vol. 47(C).
    6. Owens, Jayanti, 2021. "Parental intervention in school, academic pressure, and childhood diagnoses of ADHD," Social Science & Medicine, Elsevier, vol. 272(C).

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