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Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006
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Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Jan 14, 2016

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Page 1: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172Issues in African Economic Development

Lecture 12

February 23, 2006

Page 2: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 2

Outline:

(1) What can public policy do about HIV/AIDS in Africa?

(2) New topic: Education and economic development

Page 3: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 3

Key questions in the study of HIV/AIDS

(0) Characterizing the extent of the problem (today)

(1) What impact does HIV/AIDS have on economic development in Africa?

(2) Why does HIV/AIDS continue to spread in Africa?

(3) What can / should public policy do about HIV/AIDS?

Page 4: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 4

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

Page 5: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 5

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

- Positive or negative effect on unsafe sex?

- Choose unsafe sex if: S + (PHIV – P)(1 – R)V > 0

Page 6: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 6

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

Page 7: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 7

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

Page 8: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 8

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

Page 9: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 9

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

(5) Subsidies for anti-retroviral medical treatment (ARVs) (Compliance? Company profits?)

Page 10: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 10

What can public policy do about HIV/AIDS?

(1) Testing people, inform them of their HIV status

(2) Condom distribution

(3) Public health information campaigns (e.g., Uganda)

(4) Regulate prostitution

(5) Subsidies for anti-retroviral medical treatment (ARVs) (Compliance? Company profits?)

(6) Development of an HIV vaccine

Page 11: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 11

Outline:

(1) What can public policy do about HIV/AIDS in Africa?

(2) New topic: Education and economic development

Page 12: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 12

Education and economic development

• Does education lead to higher income? OR does higher income lead to more educational investment?

Page 13: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 13

Education and economic development

• Does education lead to higher income? OR does higher income lead to more educational investment?

• Unclear macroeconomic evidence on education and growth (e.g., the case of Kenya)

Page 14: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 14

Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

Page 15: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 15

Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

(2) Education may improve adoption of new technologies, e.g., in agriculture, health

Page 16: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 16

Education benefits beyond wages

(1) Women’s education and infant mortality: each additional year of schooling is associated with a 5-10% reduction in under-5 mortality

(2) Education may improve adoption of new technologies, e.g., in agriculture, health

(3) Educated people may make better citizens in a democracy, and be more active in civil society organizations

Page 17: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 17

Whiteboard #1

Page 18: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 18

Whiteboard #2

Page 19: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 19

Whiteboard #3

Page 20: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 20

Whiteboard #4

Page 21: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 21

Whiteboard #5

Page 22: Economics 172 Issues in African Economic Development Lecture 12 February 23, 2006.

Economics 172 22

Map of Africa