Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-27T20:19:13.988Z Has data issue: false hasContentIssue false

A PARSIMONIOUS MODEL OF LONGEVITY, FERTILITY, HIV TRANSMISSION AND DEVELOPMENT

Published online by Cambridge University Press:  08 July 2019

Luca Gori*
Affiliation:
University of Pisa
Piero Manfredi
Affiliation:
University of Pisa
Mauro Sodini
Affiliation:
University of Pisa
*
Address correspondence to: Luca Gori, Department of Law, University of Pisa, Via Collegio Ricci, 10, I–56126 P (PI), Italy, e-mails: [email protected], [email protected]. Phone: +39 050 22 12 847.

Abstract

A central policy issue in the battle against HIV in sub-Saharan Africa (SSA) is whether and when high-prevalence countries might become autonomous in designing and implementing their own intervention policies against the disease. The aim of this research is twofold. First, it develops a framework for explaining economic development in a general equilibrium growth model with endogenous fertility and endogenous mortality forced by the threat of a persistent, deadly infectious disease, such as HIV/AIDS in SSA. Second, it aims to shed light on the interplay between foreign aid and endogenous domestic public policies in SSA countries severely afflicted by HIV. Consequently, it investigates the demographic and macroeconomic implications of an intervention against HIV/AIDS whose total amount is the sum of an exogenous component representing foreign aid and an endogenous public expenditure. On the assumption that these policies allow the same degree of HIV control, we show the emergence of quite different responses in terms of key demo-economic variables. These effects mainly pass through the fertility response to the evolving epidemic conditions.

Type
Articles
Copyright
© Cambridge University Press 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Akbulut-Yuksel, M. and Turan, B. (2013) Left behind: Intergenerational transmission of human capital in the midst of HIV/AIDS. Journal of Population Economics 26, 15231547.CrossRefGoogle Scholar
Atun, R., Silva, S., Ncube, M. and Vassall, A. (2016A) Innovative financing for HIV response in sub–Saharan Africa. Journal of Global Health 6, e010407.CrossRefGoogle Scholar
Atun, R., Chang, A. Y., Ogbuoji, O., Silva, S., Resch, S., Hontelez, J. and Bärnighausen, T. (2016B) Long-term financing needs for HIV control in sub-Saharan Africa in 2015–2050: A modelling study. British Medical Journal Open 6, e009656.Google Scholar
Azomahou, T. T., Boucekkine, R. and Diene, B. (2016) HIV/AIDS and development: A reappraisal of the productivity and factor accumulation effects. American Economic Review 106, 472477.CrossRefGoogle ScholarPubMed
Blackburn, K. and Cipriani, G. P. (2002) A model of longevity, fertility and growth. Journal of Economic Dynamics & Control 26, 187204.CrossRefGoogle Scholar
Boucekkine, R., Desbordes, R. and Latzer, H. (2009) How do epidemics induce behavioral changes? Journal of Economic Growth 14, 233264.CrossRefGoogle Scholar
Browning, M., Hansen, L. and Heckman, J. J. (1999) Micro data and general equilibrium models. In: Taylor, J. and Woodford, M. (eds.) Handbook of Macroeconomics, Vol. 1A, Chapter 8, 543633, North Holland: Amsterdam.CrossRefGoogle Scholar
Calvo, G. A. (1978) On the time consistency of optimal policy in a monetary economy. Econometrica 46, 14111428.CrossRefGoogle Scholar
Castro, R., Behrman, J. R. and Kohler, H. P. (2015) Perception of HIV risk and the quantity and quality of children: The case of rural Malawi. Journal of Population Economics 28, 113132.CrossRefGoogle ScholarPubMed
Cazzavillan, G., and Pintus, P. A. (2004) Robustness of multiple equilibria in OLG economies. Review of Economic Dynamics 7, 456475.CrossRefGoogle Scholar
Chakraborty, S. (2004) Endogenous lifetime and economic growth. Journal of Economic Theory 116, 119137.CrossRefGoogle Scholar
Chakraborty, S., Papageorgiou, C. and Pérez Sebastián, F. (2010) Diseases, infection dynamics and development. Journal of Monetary Economics 57, 859872.CrossRefGoogle Scholar
Chakraborty, S., Papageorgiou, C. and Pérez Sebastián, F. (2016) Health cycles and health transitions. Macroeconomic Dynamics 20, 189213.CrossRefGoogle Scholar
Chin, Y.-M. and Wilson, N. (2018) Disease risk and fertility: evidence from the HIV/AIDS pandemic. Journal of Population Economics 31, 429451.CrossRefGoogle Scholar
Collier, P. and Sterck, O. (2018) The moral and fiscal implications of antiretroviral therapies for HIV in Africa. Oxford Economic Papers 70, 353374.CrossRefGoogle Scholar
de la Croix, D. and Michel, P. (2002) A Theory of Economic Growth. Dynamics and Policy in Overlapping Generations. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
de la Croix, D., Pestieau, P. and Ponthière, G. (2012) How powerful is demography? The Serendipity Theorem revisited. Journal of Population Economics 25, 899922.CrossRefGoogle Scholar
Diamond, P. A. (1965) National debt in a neoclassical growth model. American Economic Review 55, 11261150.Google Scholar
Fanti, L. (2009) Longevity, fertility and demographic transition in an OLG model. Economics Bulletin 29, 348357.Google Scholar
Fanti, L. and Gori, L. (2014) Endogenous fertility, endogenous lifetime and economic growth: the role of child policies. Journal of Population Economics 27, 529564.CrossRefGoogle Scholar
Fanti, L., Gori, L. and Tramontana, F. (2014) Endogenous lifetime, accidental bequests and economic growth. Decisions in Economics and Finance 37, 8198.CrossRefGoogle Scholar
Galor, O. and Weil, D. N. (1996) The gender gap, fertility, and growth. American Economic Review 86, 374387.Google Scholar
Gollin, D. (2002) Getting income shares right. Journal of Political Economy 110, 458474.CrossRefGoogle Scholar
Gomes, F. A. R. and Ribeiro, P. F. (2015) Estimating the elasticity of intertemporal substitution taking into account the precautionary savings motive. Journal of Macroeconomics 45, 108123.CrossRefGoogle Scholar
Gori, L. and Sodini, M. (2019) A contribution to the theory of fertility and economic development. Macroeconomic Dynamics, forthcoming, doi: http://dx.doi.org/10.1017/S1365100519000415.CrossRefGoogle Scholar
Gori, L., Lupi, E., Manfredi, P. and Sodini, M. (2017) Can HIV alter the quantity-quality switch and delay the fertility transition in Sub-Saharan Africa? GLO Discussion Paper No. 75.Google Scholar
Gossel, J. (2018) FDI, democracy and corruption in Sub-Saharan Africa. Journal of Policy Modeling 40, 647662.CrossRefGoogle Scholar
Haacker, M. (2009) Financing HIV/AIDS programs in sub-Saharan Africa. Health Affairs 28, 16061616.CrossRefGoogle ScholarPubMed
Hall, R. E. (1988) Intertemporal substitution in consumption. Journal of Political Economy 96, 339357.CrossRefGoogle Scholar
Hall, R. E. and Jones, C. I. (2007) The value of life and the rise in health spending. Quarterly Journal of Economics 122, 3972.CrossRefGoogle Scholar
Havranek, T., Horvath, R., Irsova, Z. and Rusnak, M. (2015) Cross-country heterogeneity in intertemporal substitution. Journal of International Economics 96, 100118.CrossRefGoogle Scholar
Hubbard, R. G. and Judd, K. L. (1987). Social security and individual welfare: precautionary saving, borrowing constraints, and the payroll tax. American Economic Review 77, 630646.Google Scholar
Jones, L. E. and Schoonbroodt, A. (2010) Complements versus substitutes and trends in fertility choice in dynastic models. International Economic Review 51, 671699.CrossRefGoogle Scholar
Juhn, C., Kalemli-Ozcan, S. and Turan, B. (2013) HIV and fertility in Africa: first evidence from population-based surveys. Journal of Population Economics 26, 835853.CrossRefGoogle Scholar
Kalemli-Ozcan, S. (2012) AIDS, “reversal” of the demographic transition and economic development: evidence from Africa. Journal of Population Economics 25, 871897.CrossRefGoogle Scholar
Kalemli-Ozcan, S. and Turan, B. (2011) HIV and fertility revisited. Journal of Development Economics 96, 6165.CrossRefGoogle Scholar
Katz, I., Routh, S., Bitran, R., Hulme, A. and Avila, C. (2014) Where will the money come from? Alternative mechanisms to HIV donor funding. BMC Public Health 14, e956.CrossRefGoogle ScholarPubMed
Mohiddin, A., and Johnston, D. (2006) HIV/AIDS mitigation strategies and the State in sub-Saharan Africa – the missing link? Globalization and Health 2, 15.CrossRefGoogle Scholar
Pestieau, P. and Ponthière, G. (2017) Optimal fertility under age-dependent labour productivity. Journal of Population Economics 30, 621646.CrossRefGoogle Scholar
Remme, M., Siapka, M., Sterck, O., Ncube, M., Watts, C. and Vassall, A. (2016) Financing the HIV response in sub-Saharan Africa from domestic sources: moving beyond a normative approach. Social Science & Medicine 169, 6676.CrossRefGoogle ScholarPubMed
Resch, S., Ryckman, T. and Hecht, R. (2015) Funding AIDS programmes in the era of shared responsibility: an analysis of domestic spending in 12 low-income and middle-income countries. Lancet Global Health 3, 5261.CrossRefGoogle ScholarPubMed
Rosen, S. (1988). The value of changes in life expectancy. Journal of Risk and Uncertainty 1, 285304.CrossRefGoogle Scholar
UNAIDS (2017) Global HIV Statistics. www.unaids.org.Google Scholar
WHO (2017). Global Health Estimates 2015: Estimated deaths by age, sex, and cause.Google Scholar
Young, A. (2005) The gift of the dying: the tragedy of AIDS and the welfare of future African generations. Quarterly Journal of Economics 120, 423466.Google Scholar