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A brief contribution to the debate over the impact if HIV/AIDS on economic growth

  • DelaCruz, Juan

The objective of this paper is to obtain estimates of the effect of HIV prevalence on the growth rate of real GDP per capita between 1990 and 2004 that are not affected by the presence of simultaneity. To achieve this goal requires an instrumental variable that is correlated with changes in the prevalence of HIV but is otherwise unrelated to with the error term of the growth equation. An instrument is a variable that does not itself belong in the regression, that is correlated with the suspect explanatory variable, and that is uncorrelated with the error term. The instrumental variables employed in this paper are a set of social and epidemiological determinants of the HIV infection, and indexes of macroeconomic performance at the country level.

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File URL: http://mpra.ub.uni-muenchen.de/10841/1/MPRA_paper_10841.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10841.

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Date of creation: Nov 2007
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Handle: RePEc:pra:mprapa:10841
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  8. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May.
  9. Gauri Kartini Shastry & David N. Weil, 2003. "How Much of Cross-Country Income Variation is Explained by Health?," Working Papers 2003-08, Brown University, Department of Economics.
  10. McDonald, Scott & Roberts, Jennifer, 2002. "Growth and multiple forms of human capital in an augmented Solow model: a panel data investigation," Economics Letters, Elsevier, vol. 74(2), pages 271-276, January.
  11. Robalino, David A. & Jenkins, Carol & El Maroufi, Karim, 2002. "Risks and macroeconomic impacts of HIV/AIDS in the Middle East and North Africa : why waiting to intervene can be costly," Policy Research Working Paper Series 2874, The World Bank.
  12. Steven D. Levitt, 1995. "The Effect of Prison Population Size on Crime Rates: Evidence From Prison Overcrowding Litigation," NBER Working Papers 5119, National Bureau of Economic Research, Inc.
  13. Knowles, Stephen & Owen, P. Dorian, 1995. "Health capital and cross-country variation in income per capita in the Mankiw-Romer-Weil model," Economics Letters, Elsevier, vol. 48(1), pages 99-106, April.
  14. Abegunde, Dele Olawale & Stanciole, Anderson E., 2008. "The economic impact of chronic diseases: How do households respond to shocks? Evidence from Russia," Social Science & Medicine, Elsevier, vol. 66(11), pages 2296-2307, June.
  15. Scott McDonald & Jennifer Roberts, 2004. "Aids and Economic Growth: A Human Capital Approach," Working Papers 2004008, The University of Sheffield, Department of Economics, revised Aug 2004.
  16. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
  17. Amar A. Hamoudi & Jeffrey D. Sachs, 1999. "Economic Consequences of Health Status: A Review of the Evidence," CID Working Papers 30, Center for International Development at Harvard University.
  18. Steven D. Levitt, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effects of Police on Crime: Reply," American Economic Review, American Economic Association, vol. 92(4), pages 1244-1250, September.
  19. Justin McCrary, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: Comment," American Economic Review, American Economic Association, vol. 92(4), pages 1236-1243, September.
  20. Simon Dixon & Scott McDonald & Jennifer Roberts, 2001. "AIDS and economic growth in Africa: a panel data analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(4), pages 411-426.
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