Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/34164 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2393
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
What is the right balance among policy interventions in order to ensure economic growth over the long run when an epidemic causes heavy mortality among young adults? We argue that, in general, policies to combat the disease and promote education must be concentrated, in certain ways, on some subgroups of society, at first to the partial exclusion of others. This concentration involves what we term the macroeconomics of targeting. The central comparison is then between programs under which supported families enjoy the benefits of spending on health and education simultaneously (DT), and those under which the benefits in these two domains are sequenced (ST). When levels of human capital are uniformly low at the outbreak, DT is superior to ST if the subsequent mortality rate exceeds some threshold value. Outside aid makes DT more attractive; but DT restricts support to fewer families initially and so increases inequality.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
151.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.