The macroeconomics of targeting: the case of an enduring epidemic

Clive Bell and Hans Gersbach

Journal of Health Economics, 2009, vol. 28, issue 1, 54-72

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, at first on some subgroups of society. 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 mortality rate exceeds some threshold value. Outside aid makes DT more attractive; but DT restricts support to fewer families initially and so increases inequality. A summary account of the empirical evidence is followed by an application of the framework to South Africa.

Keywords: Epidemic diseases; HIV/AIDS; Macroeconomics of targeting; Education support; Health policies (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (18)

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Related works:
Working Paper: The Macroeconomics of Targeting: The Case of an Enduring Epidemic (2006)
Working Paper: The Macroeconomics of Targeting: The Case of an Enduring Epidemic (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:28:y:2009:i:1:p:54-72

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