IDEAS home Printed from https://ideas.repec.org/a/spr/hecrev/v7y2017i1d10.1186_s13561-016-0139-x.html
   My bibliography  Save this article

Policy makers, the international community and the population in the prevention and treatment of diseases: case study on HIV/AIDS

Author

Listed:
  • Kjell Hausken

    (University of Stavanger)

  • Mthuli Ncube

    (St Antony’s College, University of Oxford, Radcliffe Observatory Quarter)

Abstract

A four-period game is developed between a policy maker, the international community, and the population. This research supplements, through implementing strategic interaction, earlier research analyzing "one player at a time". The first two players distribute funds between preventing and treating diseases. The population reacts by degree of risky behavior which may cause no disease, disease contraction, recovery, sickness/death. More funds to prevention implies less disease contraction but higher death rate given disease contraction. The cost effectiveness of treatment relative to prevention, country specific conditions, and how the international community converts funds compared with the policy maker in a country, are illustrated. We determine which factors impact funding, e.g. large probabilities of disease contraction, and death given contraction, and if the recovery utility and utility of remaining sick or dying are far below the no disease utility. We also delineate how the policy maker and international community may free ride on each other’s contributions. The model is tested against empirical data for 43 African countries. The results show consistency between the theoretical model and empirical estimates. The paper argues for the need to create commitment mechanisms to ensure that free riding by both countries and the international community is avoided.

Suggested Citation

  • Kjell Hausken & Mthuli Ncube, 2017. "Policy makers, the international community and the population in the prevention and treatment of diseases: case study on HIV/AIDS," Health Economics Review, Springer, vol. 7(1), pages 1-12, December.
    • Handle: RePEc:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-016-0139-x
    DOI: 10.1186/s13561-016-0139-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13561-016-0139-x
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s13561-016-0139-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul Collier & Olivier Sterck, 2018. "The moral and fiscal implications of antiretroviral therapies for HIV in Africa," Oxford Economic Papers, Oxford University Press, vol. 70(2), pages 353-374.
    2. Till Bärnighausen & Joshua A Salomon & Nalinee Sangrujee, 2012. "HIV Treatment as Prevention: Issues in Economic Evaluation," PLOS Medicine, Public Library of Science, vol. 9(7), pages 1-5, July.
    3. Michael Kremer & Christopher M. Snyder, 2003. "Why Are Drugs More Profitable Than Vaccines?," NBER Working Papers 9833, National Bureau of Economic Research, Inc.
    4. Michael Kremer & Christopher M. Snyder, 2015. "Preventives Versus Treatments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(3), pages 1167-1239.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kjell Hausken & Mthuli Ncube, 2020. "Game theoretic analysis of persons, the pharmaceutical industry, and donors in disease contraction and recovery," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-17, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hausken, Kjell & Ncube, Mthuli, 2015. "Policy-Makers, the International Community and People Living with HIV: The Need for New Commitment Mechanisms," UiS Working Papers in Economics and Finance 2015/6, University of Stavanger.
    2. Kjell Hausken & Mthuli Ncube, 2020. "Game theoretic analysis of persons, the pharmaceutical industry, and donors in disease contraction and recovery," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-17, December.
    3. Kjell Hausken & Mthuli Ncube, 2021. "Decisions of persons, the pharmaceutical industry, and donors in disease contraction and recovery assuming virus mutation," Health Economics Review, Springer, vol. 11(1), pages 1-14, December.
    4. Remme, Michelle & Siapka, Mariana & Sterck, Olivier & Ncube, Mthuli & Watts, Charlotte & Vassall, Anna, 2016. "Financing the HIV response in sub-Saharan Africa from domestic sources: Moving beyond a normative approach," Social Science & Medicine, Elsevier, vol. 169(C), pages 66-76.
    5. Judith Kabajulizi & Judith Kabajulizi & Mthuli Ncube, 2015. "The economy wide impact of HIV/AIDS and the funding dilemma in Africa: Evidence from a dynamic life cycle horizon," EcoMod2015 8563, EcoMod.
    6. Kremer, Michael, 2018. "Worst-Case Bounds on R&D and Pricing Distortions: Theory and Disturbing Conclusions if Consumer Values Follow the World Income," CEPR Discussion Papers 13241, C.E.P.R. Discussion Papers.
    7. Kremer, Michael & Snyder, Christopher, 2018. "Preventives Versus Treatments Redux: Tighter Bounds on Distortions in Innovation Incentives with an Application to the Global D," CEPR Discussion Papers 12751, C.E.P.R. Discussion Papers.
    8. Michael Kremer & Christopher M. Snyder, 2018. "Worst-Case Bounds on R&D and Pricing Distortions: Theory with an Application Assuming Consumer Values Follow the World Income Distribution," NBER Working Papers 25119, National Bureau of Economic Research, Inc.
    9. Sterck, Olivier, 2016. "Natural resources and the spread of HIV/AIDS: Curse or blessing?," Social Science & Medicine, Elsevier, vol. 150(C), pages 271-278.
    10. Kabajulizi, Judith & Ncube, Mthuli, 2017. "Financing HIV/AIDS responses in Africa: Impact evidence from Uganda," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 843-860.
    11. Joseph P. Newhouse, 2021. "An Ounce of Prevention," Journal of Economic Perspectives, American Economic Association, vol. 35(2), pages 101-118, Spring.
    12. Goodkin-Gold, Matthew & Kremer, Michael & Snyder, Christopher M. & Williams, Heidi, 2022. "Optimal vaccine subsidies for endemic diseases," International Journal of Industrial Organization, Elsevier, vol. 84(C).
    13. Kremer, Michael & Williams, Heidi & Snyder, Christopher & Goodkin-Gold, Matthew, 2020. "Optimal Subsidies for Prevention of Infectious Disease," CEPR Discussion Papers 15433, C.E.P.R. Discussion Papers.
    14. Gori, Luca & Manfredi, Piero & Sodini, Mauro, 2021. "A Parsimonious Model Of Longevity, Fertility, Hiv Transmission And Development," Macroeconomic Dynamics, Cambridge University Press, vol. 25(5), pages 1155-1174, July.
    15. Younes, George Abi & Ayoubi, Charles & Ballester, Omar & Cristelli, Gabriele & de Rassenfosse, Gaetan & Foray, Dominique & Gaule, Patrick & Pellegrino, Gabriele & van den Heuvel, Matthias & Webster, B, 2020. "COVID-19_Insights from Innovation Economists," SocArXiv b5zae, Center for Open Science.
      • Dominique Foray & Gaetan de Rassenfosse & George Abi Younes & Charles Ayoubi & Omar Ballester & Gabriele Cristelli & Matthias van den Heuvel & Ling Zhou & Gabriele Pellegrino & Patrick Gaulé & Elizab, 2020. "COVID-19: Insights from Innovation Economists," Working Papers 10, Chair of Science, Technology, and Innovation Policy.
    16. Matthew Goodkin-Gold & Michael Kremer & Christopher M. Snyder & Heidi L. Williams, 2020. "Optimal Vaccine Subsidies for Endemic and Epidemic Diseases," Working Papers 2020-162, Becker Friedman Institute for Research In Economics.
    17. Michael Kremer & Christopher M. Snyder, 2018. "Preventives Versus Treatments Redux: Tighter Bounds on Distortions in Innovation Incentives with an Application to the Global Demand for HIV Pharmaceuticals," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(1), pages 235-273, August.
    18. Michal Fabinger & E. Glen Weyl, 2018. "Functional Forms for Tractable Economic Models and the Cost Structure of International Trade," CIRJE F-Series CIRJE-F-1092, CIRJE, Faculty of Economics, University of Tokyo.
    19. Olanrewaju Medu & Adegboyega Lawal & Doug Coyle & Kevin Pottie, 2021. "Economic evaluation of HIV testing options for low-prevalence high-income countries: a systematic review," Health Economics Review, Springer, vol. 11(1), pages 1-11, December.
    20. Eswaran, Mukesh & Gallini, Nancy, 2017. "Can Competition Extend the Golden Age of Antibiotics?," Microeconomics.ca working papers -2017-9, Vancouver School of Economics, revised 19 Oct 2017.

    More about this item

    Keywords

    Disease; Policy; Game; Funding; Prevention; Treatment; Resource distribution; Free riding; Risky behavior;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • I10 - Health, Education, and Welfare - - Health - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-016-0139-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/economics/journal/13561 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.