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Battling Infection, Fighting Stagnation

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Author Info

  • Shankha Chakraborty

    ()
    (University of Oregon Economics Department)

  • Chris Papageorgiou

    ()
    (International Monetary Fund)

  • Fidel Perez Sebastian

    ()
    (University of Alicante Economics Department)

Abstract

Why are some countries mired in poverty and ill health? Can policy facilitate their transition to sustained growth and better living standards? We offer answers using a dynamic model of disease and development. Endogenous transmission of infectious disease generates non-ergodic growth where income alone cannot push a country out of a low-growth development trap. Policy interventions, for example external aid, can successfully accelerate growth only when directed towards improving health and eliminating the burden of infectious disease. Prioritizing improvements to adult mortality over morbidity is better for development.

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File URL: http://economics.uoregon.edu/papers/UO-2010-11_Chakraborty_Diseases_Policy.pdf
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Bibliographic Info

Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2010-11.

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Length: 25
Date of creation: 09 Sep 2010
Date of revision:
Handle: RePEc:ore:uoecwp:2010-11

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Keywords: Infectious Disease; Morbidity; Mortality; Productivity; Policy Analysis.;

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