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A Lifetime Portfolio of Risky and Risk-Free Sexual Behaviour and the Prevalence of AIDS

A lifetime portfolio of risky and risk-free sexual activities is conceptually constructed in this paper. People's time allocation between risky and risk-free sexual activities affects, and is affected by, the prevalence of AIDS. A small satisfaction differential between risky sex and risk-free sex can lead to a significant prevalence of AIDS. Numerical simulations suggest that the reduction in the prevalence of AIDS generated by a one percent improvement in the sensual quality of freely distributed condoms can be 0.855 percent when the initial satisfaction differential between risky sex and risk-free sex is 50 percent, or 0.464 percent when the initial satisfaction differential is 100 percent.

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File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012106.pdf
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Paper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp01-04.

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Length: 22 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:uow:depec1:wp01-04
Contact details of provider: Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html

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  1. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, 09.
  2. John C. Caldwell, 2000. "Rethinking the African AIDS Epidemic," Population and Development Review, The Population Council, Inc., vol. 26(1), pages 117-135.
  3. Michael Kremer, 1996. "Integrating Behavioral Choice into Epidemiological Models of the AIDS Epidemic," NBER Working Papers 5428, National Bureau of Economic Research, Inc.
  4. Thompson, Velma Montoya, 1989. "AIDS Testing: An Economic Assessment of Evolving Public Policy," Economic Inquiry, Western Economic Association International, vol. 27(2), pages 259-69, April.
  5. Richard H. Thaler, 2000. "From Homo Economicus to Homo Sapiens," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 133-141, Winter.
  6. Kremer, Michael, 1996. "Integrating Behavioral Choice into Epidemiological Models of AIDS," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 549-73, May.
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