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Investing in Hope: AIDS, Life Expectancy, and Human Capital Accumulation

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  • Rui Huang

    (University of California-Berkeley)

  • Lilyan E. Fulginiti

    (University of Nebraska)

  • E. Wesley Peterson

    (University of Nebraska)

Abstract

A three period overlapping generations model is developed to investigate the impact of shorter life expectancy due to disease, on human capital investment decisions and income growth. This research is particularly relevant to Sub-Saharan Africa given the dramatic reduction in life expectancy due to HIV/AIDS and the potential lasting effects on growth. Our results indicate that as life expectancy shortens so does schooling inducing a lower growth rate of income. These relationships are even more pronounced for the African continent than for the rest of the world.

Suggested Citation

  • Rui Huang & Lilyan E. Fulginiti & E. Wesley Peterson, 2005. "Investing in Hope: AIDS, Life Expectancy, and Human Capital Accumulation," Development and Comp Systems 0502023, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0502023
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    References listed on IDEAS

    as
    1. Jong-Wha Lee & Yong Jin Kim, 1999. "Technological Change, Investment in Human Capital, and Economic Growth," CID Working Papers 29A, Center for International Development at Harvard University.
    2. Swanson, Charles E & Kopecky, Kenneth J, 1999. "Lifespan and Output," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 213-225, April.
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    5. Bloom, David E & Williamson, Jeffrey G, 1998. "Demographic Transitions and Economic Miracles in Emerging Asia," The World Bank Economic Review, World Bank, vol. 12(3), pages 419-455, September.
    6. David E. Bloom & Jeffrey D. Sachs, 1998. "Geography, Demography, and Economic Growth in Africa," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 207-296.
    7. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
    8. Desmond McCarthy & Holger Wolf & Yi Wu, 2000. "The Growth Costs of Malaria," NBER Working Papers 7541, National Bureau of Economic Research, Inc.
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    10. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
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    Cited by:

    1. Thornton, Rebecca L., 2012. "HIV testing, subjective beliefs and economic behavior," Journal of Development Economics, Elsevier, vol. 99(2), pages 300-313.

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    More about this item

    Keywords

    HIV/AIDS; Africa; life expectancy; growth; overlapping generations.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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