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Led by Tallinn University of Technology in Estonia, and involving partners at Tel Aviv University in Israel and Finland’s Aalto University and University of Helsinki, the IBEP (Individual Behaviour and Economic Performance) project took a unique interdisciplinary approach to investigate the linkages between people’s mental state and their financial decisions.
“Our project leveraged insights on the genetic background of mental health issues and the crucial role of gene-environment interactions in shaping mental health outcomes,” explains Aaro Hazak, coordinator of IBEP. “This is an entirely new research lane, with deeper than ever exploration of how mental health is associated with economic behaviour. This could potentially inform policies that promote better decision-making and a more inclusive economy.”
Key findings and implications
Completed in August 2023, the project delivered valuable evidence on how mental health may shape economic outcomes. One of the project’s most significant findings focuses on economic decisions between individuals with varying psychiatric traits. The discovery underscores the importance of tailored policies and practices to address these disparities.
“Education and digital capacity also emerged as crucial factors shaping economic outcomes, suggesting targeted interventions in these areas could yield substantial benefits for diverse individuals,” Hazak adds.
The insights from the IBEP project have tangible implications for policy design, especially in promoting individual well-being, enhancing productivity and reducing healthcare costs. By understanding the connection between mental health and economic decisions, policymakers can develop strategies that consider individual differences, thus fostering a more inclusive society.
To inform policymakers and practitioners, IBEP contributed to the Tax Think Tank commissioned by the Estonian Minister of Finance, along with an intersectoral knowledge transfer workshop on mental health, resilience and economic behaviour held in June 2022 in Tallinn.
A comprehensive set of IBEP activities – including workshops, staff exchanges, mentoring, data labs and conferences – strongly supported the interdisciplinary research capacity building within the team. This foundation facilitated the creation of a joint cross-border research group focusing on novel topics at the crossroads of mental health, financial decisions and economic outcomes.
Five doctoral theses benefited from the IBEP cooperation. Among them was one which highlighted that although flexible work arrangements can boost productivity and individual well-being, cognitive traits may influence time management and self-discipline, leading to varying levels of benefit from flexible work among individuals.
The journey beyond IBEP
Even after the conclusion of the IBEP project, research in this field continues. Collaborations initiated during the project’s lifetime remain active, with ongoing studies exploring how mental health and its genetic factors influence economic outcomes.
Hazak continues his research both at the Faculty of Medicine at the University of Helsinki, and at Aalto University’s Department of Finance, extending cooperation with prominent researchers. “Our team remains dedicated to advancing knowledge in this field, fostering partnerships and driving impactful research beyond the confines of the project,” he says.
The IBEP project’s novel research methodology demonstrates the importance of interdisciplinary collaboration in addressing complex societal challenges. By integrating diverse perspectives and methodologies, it provides valuable insights that can shape policies promoting better health, economic outcomes and inclusion across Europe.