Rethinking aid for AIDS A public good approach

Diana Sonntag

VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century from Verein für Socialpolitik / German Economic Association

Abstract: This paper demonstrates why an increased quantity of funding as claimed by big health lenders is not effective to achieve the Millennium Development Goals (MDGs). An alternative funding mechanism linking the disbursement of matching grants with a minimum provision level is suggested. In order to study the impact of conditional subsidies on the efficiency of international health-promoting public goods, non-cooperative multi-stage games are analyzed. In the participation stage, a subsidy which is contingent on some minimum provision level is determined. In later stages countries choose their contributions to a health-promoting public good and receive a subsidy if their supply is no less than a predetermined threshold. The analyses indicate that efficient provision levels can be achieved.

JEL-codes: F35 H87 I18 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-hea and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc12:62080

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