The welfare costs of HIV/AIDS in Eastern Europe: An empirical assessment using the economic value-of-life approach

Julia Fimpel and Michael Stolpe

No 1297, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Based on the aggregation of individual willingness-to-pay for a statistical life, we calibrate an intertemporal optimization model to determine the aggregate welfare losses from HIV/AIDS in 25 Eastern European countries. Assuming a discount rate of three percent, we find a total welfare loss for the whole region of 1.2 trillion US-$, approximately 16 percent of the region’s annual GDP between 1995 and 2001. Although prevalence and incidence rates diverge sharply between countries with central Europe far less affected than the major countries in the Commonwealth of Independent States and the Baltics the epidemic is likely to spread to all countries unless a coherent strategy of prevention and treatment is backed up by substantial increases in health care investments. The sheer size of this task and the international nature of the epidemic render this one of the most important current challenges for all of Europe.

Keywords: Survival Probabilities; Value of a Statistical Life; Willingness-to-Pay; Eastern Europe; HIV/AIDS (search for similar items in EconPapers)
JEL-codes: D91 I12 I18 J17 (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/3886/1/kap1297.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1297

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().