Growth and Epidemic Diseases

31 Pages Posted: 30 Mar 2005

See all articles by Clive Bell

Clive Bell

University of Heidelberg - South Asia Institute (SAI)

Hans Gersbach

ETH Zurich - CER-ETH -Center of Economic Reseaarch; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Date Written: December 2004

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.

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

JEL Classification: E13, I12, I21, O41

Suggested Citation

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

Clive Bell

University of Heidelberg - South Asia Institute (SAI) ( email )

Grabengasse 14
Heidelberg, D-69117
Germany

Hans Gersbach (Contact Author)

ETH Zurich - CER-ETH -Center of Economic Reseaarch ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland
+41 44 632 82 80 (Phone)
+41 44 632 18 30 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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