Advanced Search
MyIDEAS: Login to save this paper or follow this series

HIV/AIDS and Poverty in South Africa: a Bayesian Estimation

Contents:

Author Info

  • Fabrice Murtin

    ()
    (GREDI, Université de Sherbrooke)

  • Federica Marzo

    ()
    (CREST, INSEE)

Abstract

In this paper we assess the causal impact of HIV/AIDS on monetary poverty using a panel data-set from South Africa and modeling the consequences of the illness on both earnings and transfers. Two major econometric problems are likely to bias the estimation: endogeneity of the HIV/AIDS dummy variable, and autoselection of the individuals participating to the labour market or to transfers networks. We solve both of them by proposing an original framework where we include correlated fixed-effects both in the level and the participation equations, which are estimated simultaneously with original Bayesian methods. The procedure is tested and very well-behaved. Splitting the sample into urban and rural population, we show that HIV/AIDS has a significant but moderate impact on poverty for urban population, because transfers partly compensate the fall of earnings entailed by the decrease in labour market participation. On the contrary, HIV/AIDS has an important impact on poverty for the rural population because it causes a fall of transfers. Surprisingly the effect on earnings is not significant . We argue that those results can be explained by the existence of an efficient public safety net in urban settings, while in contrast private transfers are subject to moral hazard and imperfect commitment that characterize risk-sharing in rural settings.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0708.pdf
File Function: First version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 07-08.

as in new window
Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:shr:wpaper:07-08

Contact details of provider:
Postal: Sherbrooke, Québec, J1K 2R1
Phone: (819) 821-7233
Fax: (819) 821-6930
Email:
Web page: http://www.gredi.org/home/documents-de-travail
More information through EDIRC

Related research

Keywords: DHIV/AIDS; MCMC; Selection Models;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Marcel Fafchamps & Flore Gubert, 2007. "Risk Sharing and Network Formation," Economics Series Working Papers GPRG-WPS-067, University of Oxford, Department of Economics.
  2. Maitra, Pushkar & Ray, Ranjan, 2003. "The effect of transfers on household expenditure patterns and poverty in South Africa," Journal of Development Economics, Elsevier, vol. 71(1), pages 23-49, June.
  3. Ethan Ligon & Jonathan P. Thomas & Tim Worrall, 2000. "Mutual Insurance, Individual Savings and Limited Commitment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(2), pages 216-246, April.
  4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  5. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, vol. 40(1), pages 1-24, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:shr:wpaper:07-08. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luc Savard).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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