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UNESCO HIV and Health Education Clearinghouse

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  1. The Long-run Economic Costs of AIDS: Theory and an Application to South Africa

    Most existing estimates of the macroeconomic costs of AIDS, as measured by the reduction in the growth rate of GDP, are modest. For Africa - the continent where the epidemic has hit the hardest - they range between 0.3 and 1.5 per cent annually. The reason is that these estimates are based on an underlying assumption that the main effect of increased mortality is to relieve pressure on existing land and physical capital so that output per head is little affected. …

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