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HEALTH CYCLES AND HEALTH TRANSITIONS

descriptionPublicationkeyboard_double_arrow_right Article , Preprint 04 Jun 2014 Spain, United Kingdom English Publisher:Cambridge University Press (CUP)Journal:Macroeconomic Dynamics, volume 20, pages 189-213 (issn: 1365-1005, eissn: 1469-8056,

Authors: Chakraborty, Shankha; Perez Sebastian, Fidel; Papageorgiou, Chris;

doi: 10.1017/s1365100514000297

handle: 10045/52432

HEALTH CYCLES AND HEALTH TRANSITIONS

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Abstract

We study the dynamics of poverty and health in a model of endogenous growth and rational health behavior. Population health depends on the prevalence of infectious diseases that can be avoided through costly prevention. The incentive to do so comes from the negative effects of ill health on the quality and quantity of life. The model can generate a poverty trap where infectious diseases cycle between high and low prevalence. These cycles originate from the rationality of preventive behavior in contrast to the predator–prey dynamics of epidemiological models. We calibrate the model to reflect sub-Saharan Africa's recent economic recovery and analyze policy alternatives. Unconditional transfers are found to improve welfare relative to conditional health-based transfers: at low income levels, income growth (quality of life) is valued more than improvements to health (quantity of life).

Countries

Spain, United Kingdom

Related Organizations

University of Alicante
Spain
University of Oregon
United States
University of Hull
United Kingdom
International Monetary Fund
United States

Keywords

Infectious disease, Fundamentos del Análisis Económico, 330, Unconditional transfers, Conditional Transfers; Unconditional Transfers, Infectious Disease, Economic epidemiology, Unconditional Transfers, Cycles, Conditional Transfers, Conditional transfers, Economic Epidemiology, Morbidity, Mortality, Infectious Disease, Cycles, Economic Epidemiology, Morbidity, Mortality, Conditional Transfers, Unconditional Transfers, jel: jel:I15, jel: jel:O40, jel: jel:O11, jel: jel:O47

Impact byBIP!

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	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Average
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Average