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Rethinking aid for AIDS A public good approach

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  • Sonntag, Diana

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.

Suggested Citation

  • Sonntag, Diana, 2012. "Rethinking aid for AIDS A public good approach," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62080, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc12:62080
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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