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Title:HIV/AIDS as a Fiscal Liability PDF Logo
Authors:Haacker, Markus
Issue Date:2011
Series/Report no.:Proceedings of the German Development Economics Conference, Berlin 2011 35
Abstract:The costs of HIV/AIDS programs are significant from a macroeconomic or fiscal perspective in a number of countries. Assessing the fiscal implications is complicated by the long lags between infection and the need for HIV/AIDS-related services, and the long duration over which these services (notably treatment) are required. The paper interprets the fiscal costs of HIV/AIDS programs as quasi-liabilities, which are incurred by HIV infections and are paid off as HIV/AIDS-related services are delivered. On the microeconomic level, the analysis yields estimates of the costs incurred by single HIV infections, which - together with other criteria - can be used in assessing the effectiveness of HIV/AIDS program allocations. On the macroeconomic level, the analysis highlights the large magnitude of the HIV/AIDS quasi-liability (according to criteria for the sustainability of public debt), and quantifies the fiscal savings achieved or projected as a consequence of declining HIV incidence.
Subjects:HIV/AIDS
health shocks
health expenditures
social expenditures
fiscal space
debt sustainability
quasi-liabilities
Africa
Botswana
South Africa
Swaziland
Uganda
JEL:H5
H6
I1
Document Type:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2011 (Berlin)

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