Is the risk taking of HIV-infection influenced by income uncertainty? : Empirical Evidence from Sub-Saharan Africa
AbstractThis paper questions the positive relationship between HIV prevalence and income in Sub-Saharan Africa. In this paper, we hypothesize that a greater economic instability would reduce the incentives to engage in self-protective behaviors inducing people to increasingly take the risk of HIV-infection and hence causing a rise in HIV prevalence. We provide a simple model to stress on the effects of an increase in income risk in the incentives for protection. We test the prediction using a panel of Sub-Saharan African countries over the period 1980-2001. It is shown that the epidemic is widespread in countries that experience a great macroeconomic instability over the whole period. When introducing income instability, wealth is devoid of predictive power and the puzzle of the positive relationship between income and prevalence in Africa is lifted. Additional finding states that the risk taking of HIV-infection increases when the individuals are facing frequent and large crop shocks.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11731.
Date of creation: 2008
Date of revision:
HIV/AIDS epidemic; incentives; self-protection; macroeconomic instability; Sub-Saharan Africa;
Find related papers by JEL classification:
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-12-01 (Africa)
- NEP-ALL-2008-12-01 (All new papers)
- NEP-DEV-2008-12-01 (Development)
- NEP-HEA-2008-12-01 (Health Economics)
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