2018
DOI: 10.1257/app.20150369
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The Impact of AIDS Treatment on Savings and Human Capital Investment in Malawi

Abstract: In the past decade, antiretroviral therapy (ART), a highly effective drug treatment that slows the progression of AIDS, has become widely available in sub-Saharan Africa. The medication is rapidly reversing the steep decline in life expectancy, which had fallen by 14 years in southern Africa, due to the AIDS epidemic (United Nations Population Division 2012). Economic models of life-cycle consumption suggest that life expectancy plays a role in decisions about savings, investment, * Baranov: University of Melb… Show more

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Cited by 42 publications
(40 citation statements)
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“…Of these, several studies have highlighted beneficial economic impacts of ART initiation, which are primarily based on the positive labour market effects of improved health. Accordingly, empirical evidence has pointed to higher work performance and productivity, [10][11][12][13] lower absenteeism, 11 increases in savings rates, 15 as well as increased educational expenditures and attainment 15,16 following ART initiation.…”
mentioning
confidence: 99%
“…Of these, several studies have highlighted beneficial economic impacts of ART initiation, which are primarily based on the positive labour market effects of improved health. Accordingly, empirical evidence has pointed to higher work performance and productivity, [10][11][12][13] lower absenteeism, 11 increases in savings rates, 15 as well as increased educational expenditures and attainment 15,16 following ART initiation.…”
mentioning
confidence: 99%
“…The findings are consistent with increased access to AIDS treatment improving life expectancy and a reducing in the impact of the disease on human capital investment. As more data on ART become available, it will be important to further investigate how reductions in mortality, increases in life expectancy (Bor et al, 2013), and changes in behavior (Thirumurthy and Graff Zivin, 2012;Baranov et al, 2015;Baranov and Kohler, 2018;Friedman, 2018)…”
Section: Resultsmentioning
confidence: 99%
“…The Ministry of Health in Malawi began rolling out free ART to eligible individuals in urban areas in 2004, with rollout to smaller clinics beginning in 2006. In the MLSFH, median distance of respondents to the nearest ART clinic was 27 kilometers up until mid-2007, which made access to ART difficult given the limited means of transportation in this rural context ( Baranov, Bennett, and Kohler 2015 ; Baranov and Kohler 2014 ). ART-providing clinics opened between August of 2007 and March of 2008 in each of the three study regions (shortly before data collection for the 2008 round of the MLSFH), reducing the median distance to the nearest ART clinic to 8.9 kilometers by the 2008 MLSFH ( Baranov, Bennett, and Kohler 2015 ).…”
Section: Methodsmentioning
confidence: 99%