Alzheimer’s disease and depression create substantial economic burdens, influencing healthcare policy and resource distribution. Using a computable general equilibrium (CGE) model, this study quantifies the direct and indirect macroeconomic effects of these conditions in Japan, focusing on age-specific prevalence and sector-level impacts. Results demonstrate material outcomes on productivity and gross domestic product (GDP) in an aging society. The analysis distinguishes between direct productivity losses and broader economic consequences. It models disease-specific productivity shocks and alternative care to estimate total economic costs, providing evidence to guide prevention strategies and policy design.

Key findings

• GDP varies significantly across sectors, with some industries being more affected than others, depending on the health condition addressed.
• Hypothetically eliminating new cases of depression is estimated to result in an absolute GDP increase of $3.22 billion.
• For Alzheimer’s disease, shifting care from informal to professional caregivers could yield a gain of $1.94 billion, which would contribute approximately $1.16 billion to Japan’s GDP.