The Growth economics of epidemics

Raouf Boucekkine (), Diene Bity and Azomahou Theophile

No 2006021, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This paper examines in an endogenous growth theory perspective the mechanisms through which epidemics affect long term growth. Investment in both physical and human capital are key transmission variables in this respect. The paper distinguishes between Spanish flu like epidemics and AIDS like epidemics. Two-sector growth models are shown to better reflect the specific effects of epidemics. The effects of an AIDS like pandemic on savings and education effort are also modelled via life expectancy. The paper is closed by an extension of the celebrated Cuddington-Hancock model to account for the latter features. An application to the South African case is provided. The main finding points at a delayed effect of Aids on economic growth due to the recent sharp drop in llife expectancy in this country.

Keywords: Epidemics; Human capital; Life expectancy; Growth theory; Spanish flu; AIDS (search for similar items in EconPapers)
JEL-codes: C61 C62 (search for similar items in EconPapers)
Pages: 54
Date: 2006-05-01
New Economics Papers: this item is included in nep-afr and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2006021

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