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Rethinking aid for AIDS A public good approach

  • Sonntag, Diana
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    This paper demonstrates why an increased quantity of funding as claimed by big health lenders is not effective to achieve the Millennium Development Goals (MDGs). An alternative funding mechanism linking the disbursement of matching grants with a minimum provision level is suggested. In order to study the impact of conditional subsidies on the efficiency of international health-promoting public goods, non-cooperative multi-stage games are analyzed. In the participation stage, a subsidy which is contingent on some minimum provision level is determined. In later stages countries choose their contributions to a health-promoting public good and receive a subsidy if their supply is no less than a predetermined threshold. The analyses indicate that efficient provision levels can be achieved.

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    File URL: http://econstor.eu/bitstream/10419/62080/1/VfS_2012_pid_389.pdf
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    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century with number 62080.

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    Date of creation: 2012
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    Handle: RePEc:zbw:vfsc12:62080
    Contact details of provider: Web page: http://www.socialpolitik.org/Email:


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    1. Hannes Öhler & Peter Nunnenkamp & Axel Dreher, 2010. "Does Conditionality Work? A Test for an Innovative US Aid Scheme," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 34, Courant Research Centre PEG.
    2. Sandler, Todd, 1998. "Global and Regional Public Goods: A Prognosis for Collective Action," Staff General Research Papers 1225, Iowa State University, Department of Economics.
    3. Todd Sandler & Daniel G. Arce, 2007. "New face of development assistance: public goods and changing ethics," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(4), pages 527-544.
    4. Rainer Thiele & Peter Nunnenkamp & Axel Dreher, 2010. "Do Donors Target Aid in Line with the Millennium Development Goals? A Sector Perspective of Aid Allocation," Working Papers id:3026, eSocialSciences.
    5. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
    6. Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
    7. Todd Sandler & Daniel G Arce M, 2002. "A conceptual framework for understanding global and transnational public goods for health," Fiscal Studies, Institute for Fiscal Studies, vol. 23(2), pages 195-222, June.
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