e-journal

Health and growth: causality through education

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Purpose – The paper aims to theoretically and empirically investigate the impact on human capital
investment decisions and income growth of lowered life expectancy as a result of HIV/AIDS and other
diseases.
Design/methodology/approach – The theoretical model is a three-period overlapping generations
model where individuals go through three stages in their lives, namely, young, adult, and old. The
model extends existing theoretical models by allowing the probability of premature death to differ for
individuals at different life stages, and by allowing for stochastic technological advances. The
empirical investigation focuses on the effect of HIV/AIDS on life expectancy and on the role of health
in educational investments and growth. Potential endogeneity is addressed by using various
strategies, such as controlling for country-specific time-invariant unobservables and by using the
male-circumcision rate as an instrumental variable for HIV/AIDS prevalence.
Findings – The paper shows theoretically that an increased probability of premature death leads to
less investment in human capital, and consequently slower growth. Empirically, the paper finds that
HIV/AIDS has resulted in a substantial decline in life expectancy in African countries and these falling
life expectancies are indeed associated with lower educational attainment and slower economic growth
world wide.
Originality/value – The theoretical and empirical findings reveal a causal link flowing from health
to growth, which has been largely overlooked by the existing literature. The main implication is that
health investments that decrease the incidence of diseases like HIV/AIDS resulting in increases in life
expectancy through their complementarity with human capital investments lead to long run growth.

Keywords HIV, Acquired immune deficiency syndrome, Africa, Life expectancy, Economic growth,Human capital

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Informasi Detail

Judul Seri

China Agricultural Economic Review

No. Panggil

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Penerbit

: Emeral Group., 2010

Deskripsi Fisik

China Agricultural Economic Review Vol. 2 No. 3, 2010 pp. 321-344

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

PENDIDIKAN

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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