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HIV/AIDS: The Impact on Poverty and Inequality

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  • Mr. Markus Haacker
  • Mr. Gonzalo Salinas

Abstract

Using available data on the distribution of HIV/AIDS prevalence across population groups for four sub-Saharan African countries and transposing this information to household income and expenditure surveys, we simulate the impact of HIV/AIDS on poverty and inequality. We find that the epidemic lowers average income and increases poverty, and that the jump in poverty is larger than expected from the fall in average income. This disproportionate increase in poverty reflects the large share of the population living on the threshold of poverty and the higher HIV prevalence rates in those segments of the population.

Suggested Citation

  • Mr. Markus Haacker & Mr. Gonzalo Salinas, 2006. "HIV/AIDS: The Impact on Poverty and Inequality," IMF Working Papers 2006/126, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2006/126
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    References listed on IDEAS

    as
    1. Aart Kraay, 2004. "When is Growth Pro-Poor? Cross-Country Evidence," IMF Working Papers 2004/047, International Monetary Fund.
    2. Mr. Markus Haacker, 2002. "The Economic Consequences of HIV/AIDS in Southern Africa," IMF Working Papers 2002/038, International Monetary Fund.
    3. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12425.
    4. Clive Bell & Shantayanan Devarajan & Hans Gersbach, 2003. "The long-run economic costs of AIDS : theory and an application to South Africa," Policy Research Working Paper Series 3152, The World Bank.
    5. Kraay, Aart, 2004. "When is growth pro-poor? Cross-country evidence," Policy Research Working Paper Series 3225, The World Bank.
    6. R Greener & K Jefferis & H Siphambe, 2000. "The Impact of HIV/AIDS on Poverty and Inequality in Botswana," South African Journal of Economics, Economic Society of South Africa, vol. 68(5), pages 393-404, December.
    7. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890.
    8. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426.
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    Cited by:

    1. José Cuesta, 2008. "Does a Mature AIDS Epidemic Threaten Growth?," Research Department Publications 4567, Inter-American Development Bank, Research Department.
    2. Jose Cuesta, 2010. "How much of a threat to economic growth is a mature AIDS epidemic?," Applied Economics, Taylor & Francis Journals, vol. 42(24), pages 3077-3089.
    3. José Cuesta, 2008. "¿Una epidemia de SIDA en su etapa madura es una amenaza para el crecimiento?," Research Department Publications 4568, Inter-American Development Bank, Research Department.
    4. Tendai Murisa & Tendai Chikweche, 2013. "Entrepreunership And Micro-Finance In Extreme Poverty Circumstances — Challenges And Prospects: The Case Of Zimbabwe," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-30.

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