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AIDS, Human Capital and Development

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  • Rody Manuelli

    (Washington University in St. Louis)

Abstract

In this paper I study a model in which the existence of a 'disease environment' influences parental investment in early childhood human capital and individual schooling and on the job training decisions. The model is used to analyze the effect of HIV/AIDS on aggregate output per worker. I use a calibrated version of the model to estimate the long run impact on output per worker of increasing life expectancy for individuals who have HIV/AIDS and reducing the rate of transmission of the disease in a subset of Sub-Saharan countries. I find that the effects on output per worker, the prevalence of the diseases and the growth rate of population can be substantial.

Suggested Citation

  • Rody Manuelli, 2015. "AIDS, Human Capital and Development," 2015 Meeting Papers 1193, Society for Economic Dynamics.
  • Handle: RePEc:red:sed015:1193
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    References listed on IDEAS

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    1. Yao Yao, . "Fertility and HIV Risk in Africa," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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