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Growth and Epidemic Diseases


Clive Bell


University of Heidelberg - South Asia Institute (SAI)

Hans Gersbach


Swiss Federal Institute of Technology Zurich, (CER-ETH); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Centre for Economic Policy Research (CEPR)
December 2004

CEPR Discussion Paper No. 4800

Abstract:     
We study the formation of human capital and its transmission across generations when a society is assailed by an epidemic disease such as AIDS. We establish that the disease can severely retard economic growth, even to the point of leading to an economic collapse. We also show that the epidemic may exacerbate inequality. Pooling health risks in the society puts the society on a 'make and break' road.

Number of Pages in PDF File: 31

Keywords: Epidemic diseases, AIDS, growth, human capital, pooling risks

JEL Classification: E13, I12, I21, O41

working papers series


Date posted: March 30, 2005  

Suggested Citation

Bell, Clive and Gersbach, Hans, Growth and Epidemic Diseases (December 2004). CEPR Discussion Paper No. 4800. Available at SSRN: http://ssrn.com/abstract=694522

Contact Information

Clive Bell
University of Heidelberg - South Asia Institute (SAI) ( email )
Grabengasse 14
Heidelberg, D-69117
Germany
Hans Gersbach (Contact Author)
Swiss Federal Institute of Technology Zurich, (CER-ETH) ( email )
Zürichbergstrasse 18
Zurich, 8092
Switzerland
+41 44 632 82 80 (Phone)
+41 44 632 18 30 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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