Literature on mental health often refers to poverty and deprivation as main sources of different types of mental health problems. In this paper I examine the relationship between depression, a common mental health problem and income deprivation, as well as further control variables while assuming the existence of underlying neighboring effects that shape the depression levels in certain regions of Scotland. Based on the spatial models created within the scope of this paper we can conclude that growing income deprivation within a region causes the level of depression to rise, too. Moreover, the said growth triggers a multiplier effect as well since the depression levels of neighboring regions grow accordingly. The paper concludes that resource allocation strategies should take these effects into consideration, too, when targeting certain regions in order to enhance the efficiency of regional support policies. [ABSTRACT FROM AUTHOR]