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Battling Infection, Fighting Stagnation

Author

Listed:
  • 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.

Suggested Citation

  • Shankha Chakraborty & Chris Papageorgiou & Fidel Perez Sebastian, 2010. "Battling Infection, Fighting Stagnation," University of Oregon Economics Department Working Papers 2010-11, University of Oregon Economics Department.
  • Handle: RePEc:ore:uoecwp:2010-11
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    File URL: http://economics.uoregon.edu/papers/UO-2010-11_Chakraborty_Diseases_Policy.pdf
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    More about this item

    Keywords

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

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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