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AIDS, longevity and long-run income

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  • Pedro Cavalcanti Ferreira

Abstract

This article studies the long-run impact of HIV/AIDS on per capita income and education. We focus on the disincentive to human capital accumulation given by shorter life span. We work with a continuous time overlapping generations model with education and saving decisions, calibrated for a cross-section of countries. The simulations predict that the most affected countries in Sub-Saharan Africa will be in future, on average, 20% poorer than they would be without AIDS. Schooling will decline in some cases such as Botswana, South Africa and Zambia by more than 40%. The impact of population decline was found to be irrelevant.

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File URL: http://hdl.handle.net/10.1080/00036846.2012.654915
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 45 (2013)
Issue (Month): 15 (May)
Pages: 2117-2125

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Handle: RePEc:taf:applec:45:y:2013:i:15:p:2117-2125

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