Testing the “natural rate of suicide” hypothesis

This paper analyses the economic determinants of suicide. More specifically, we test the hypothesis that suicide is related to shocks or news concerning income growth. Testing is based on an error correction model of suicide in which the long‐run part takes into account various demographic and structural variables. Empirical analysis is based on Finnish time series data covering the period 1878‐1994. Some cross‐country data are also used. The empirical results strongly support the “natural rate” hypothesis.