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AIDS, Human Capital and Development

Rodolfo Manuelli

No 1193, 2015 Meeting Papers from Society for Economic Dynamics

Abstract: In this paper I study a model in which the existence of a 'disease environment' influences parental investment in early childhood human capital and individual schooling and on the job training decisions. The model is used to analyze the effect of HIV/AIDS on aggregate output per worker. I use a calibrated version of the model to estimate the long run impact on output per worker of increasing life expectancy for individuals who have HIV/AIDS and reducing the rate of transmission of the disease in a subset of Sub-Saharan countries. I find that the effects on output per worker, the prevalence of the diseases and the growth rate of population can be substantial.

Date: 2015
New Economics Papers: this item is included in nep-dge and nep-hea
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