The Macroeconomics of Targeting: The Case of an Enduring Epidemic

Hans Gersbach and Clive Bell

No 5714, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: What is the right balance among policy interventions in order to ensure economic growth over the long run when an epidemic causes heavy mortality among young adults? We argue that, in general, policies to combat the disease and promote education must be concentrated, in certain ways, on some subgroups of society, at first to the partial exclusion of others. This concentration involves what we term the macroeconomics of targeting. The central comparison is then between programs under which supported families enjoy the benefits of spending on health and education simultaneously (DT), and those under which the benefits in these two domains are sequenced (ST). When levels of human capital are uniformly low at the outbreak, DT is superior to ST if the subsequent mortality rate exceeds some threshold value. Outside aid makes DT more attractive; but DT restricts support to fewer families initially and so increases inequality.

Keywords: Epidemic diseases; Hiv/aids; Poverty traps; Macroeconomics of targeting; Education support; Health policies; Single and double targeting (search for similar items in EconPapers)
JEL-codes: E62 H20 I10 I20 O11 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-afr, nep-hea and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The macroeconomics of targeting: the case of an enduring epidemic (2009)
Working Paper: The Macroeconomics of Targeting: The Case of an Enduring Epidemic (2006)
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