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The Economics of HIV/AIDS in Low-Income Countries: The Case for Prevention

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Author Info
David Canning

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Abstract

There are two approaches to reducing the burden of sickness and death associated with the human immunodeficiency virus (HIV), which leads to acquired immunodeficiency syndrome (AIDS): treatment and prevention. Despite large international aid flows for HIV/AIDS, the needs for prevention and treatment in low- and middle-income countries outstrip the resources available. Thus, it becomes necessary to set priorities. With limited resources, should the focus of efforts to combat HIV/AIDS be on prevention or treatment? I discuss the range of prevention and treatment alternatives and examine their cost effectiveness. I consider various arguments that have been raised against the use of cost-effectiveness analysis in setting public policy priorities for the response to HIV/AIDS in developing countries. I conclude that promoting AIDS treatment using antiretrovirals in resource-constrained countries comes at a huge cost in terms of avoidable deaths that could be prevented through interventions that would substantially lower the scale of the epidemic.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 20 (2006)
Issue (Month): 3 (Summer)
Pages: 121-142
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Handle: RePEc:aea:jecper:v:20:y:2006:i:3:p:121-142

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alan Williams, 1999. "Calculating the global burden of disease: time for a strategic reappraisal?," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 1-8.
  2. Gauri Kartini Shastry & David N. Weil, 2003. "How Much of Cross-Country Income Variation is Explained By Health?," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 387-396, 04/05. [Downloadable!] (restricted)
    Other versions:
  3. Ainsworth, Martha & Filmer, Deon, 2002. "Poverty, AIDS, and children's schooling - a targeting dilemma," Policy Research Working Paper Series 2885, The World Bank. [Downloadable!]
  4. W. Kip Viscusi & Joseph E. Aldy, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," NBER Working Papers 9487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Bloom, David E. & Mahal, Ajay S., 1997. "Does the AIDS epidemic threaten economic growth?," Journal of Econometrics, Elsevier, vol. 77(1), pages 105-124, March. [Downloadable!] (restricted)
  6. T. Paul Schultz, 2002. "Wage Gains Associated with Height as a Form of Health Human Capital," Working Papers 841, Economic Growth Center, Yale University. [Downloadable!]
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  7. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January. [Downloadable!] (restricted)
  8. Dana Goldman & Darius Lakdawalla & Neeraj Sood, 2004. "HIV Breakthroughs and Risk Sexual Behavior," NBER Working Papers 10516, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June. [Downloadable!] (restricted)
  10. Christopher J.L. Murray & Alan D. Lopez, 2000. "Progress and directions in refining the Global Burden of Disease approach: a response to Williams," Health Economics, John Wiley & Sons, Ltd., vol. 9(1), pages 69-82.
  11. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, 01. [Downloadable!] (restricted)
  12. Hoyt Bleakley, 2003. "Disease and Development: Evidence from the American South," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 376-386, 04/05. [Downloadable!] (restricted)
  13. Alwyn Young, 2004. "The Gift of the Dying: The Tragedy of AIDS and the Welfare of Future African Generations," NBER Working Papers 10991, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Bhargava, Alok & Jamison, Dean T. & Lau, Lawrence J. & Murray, Christopher J. L., 2001. "Modeling the effects of health on economic growth," Journal of Health Economics, Elsevier, vol. 20(3), pages 423-440, May. [Downloadable!] (restricted)
  15. David E. Bloom & David Canning & Bryan Graham, 2003. "Longevity and Life-cycle Savings," Scandinavian Journal of Economics, Blackwell Publishing, vol. 105(3), pages 319-338, 09. [Downloadable!] (restricted)
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  16. Emily Oster, 2005. "Sexually Transmitted Infections, Sexual Behavior, and the HIV/AIDS Epidemic," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 467-515, May.
  17. Anand, Sudhir & Hanson, Kara, 1997. "Disability-adjusted life years: a critical review," Journal of Health Economics, Elsevier, vol. 16(6), pages 685-702, December. [Downloadable!] (restricted)
  18. Markus Haacker & N. F. R. Crafts, 2003. "Welfare Implications of HIV/AIDS," IMF Working Papers 03/118, International Monetary Fund.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Aureo de Paula & Gil Shapira & Petra E. Todd, 2008. "How Beliefs About HIV Status affect Risky Behaviors: Evidence From Malawi, Second Version," PIER Working Paper Archive 08-041, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 02 Dec 2008. [Downloadable!]
  2. Joshua S. Graff Zivin & Harsha Thirumurthy & Markus Goldstein, 2006. "AIDS Treatment and Intrahousehold Resource Allocations: Children's Nutrition and Schooling in Kenya," NBER Working Papers 12689, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. David Canning & Ajay Mahal & Kunle Odumosu & Prosper OkonkwoZhiwei, 2006. "Assessing the Economic Impact of HIV/AIDS on Nigerian Households: A Propensity Score Matching Approach," PGDA Working Papers 1606, Program on the Global Demography of Aging. [Downloadable!]
  4. Jamsheed Shorish, 2007. "Welfare analysis of HIV/AIDS: Formulating and computing a continuous time overlapping generations policy model," The School of Economics Discussion Paper Series 0709, Economics, The University of Manchester. [Downloadable!]
    Other versions:
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