Battling Infection, Fighting Stagnation

28 Pages Posted: 7 Oct 2010

See all articles by Shankha Chakraborty

Shankha Chakraborty

University of Oregon - Department of Economics

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department

Fidel Perez‐Sebastian

Universidad de Alicante - Department of Economic Analysis

Date Written: September 1, 2010

Abstract

Why are some countries mired in poverty and ill health? Can policy facilitate their transition to sustained growth and better living standards? We offer answers using a dynamic model of disease and development. Endogenous transmission of infectious disease generates non-ergodic growth where income alone cannot push a country out of a low-growth development trap. Policy interventions, for example external aid, can successfully accelerate growth only when directed towards improving health and eliminating the burden of infectious disease. Prioritizing improvements to adult mortality over morbidity is better for development.

Keywords: Infectious Disease, Morbidity, Mortality, Productivity, Policy Analysis

JEL Classification: O11, O40, O47

Suggested Citation

Chakraborty, Shankha and Papageorgiou, Chris and Perez Sebastian, Fidel, Battling Infection, Fighting Stagnation (September 1, 2010). Available at SSRN: https://ssrn.com/abstract=1688004 or http://dx.doi.org/10.2139/ssrn.1688004

Shankha Chakraborty (Contact Author)

University of Oregon - Department of Economics ( email )

Eugene, OR 97403
United States
541-346-4678 (Phone)

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Fidel Perez Sebastian

Universidad de Alicante - Department of Economic Analysis ( email )

03080 Alicante
Spain

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