Most existing estimates of the macroeconomic costs of AIDS, as measured by the reduction in thegrowth rate of gross domestic product, are modest. For Africa-the continent where the epidemic has hit the hardest-they range between 0.3 and 1.5 percent annually. The reason is that these estimates...

This paper analyzes the effects of all-weather rural roads on households'net output prices, education and health in a poor, drought-prone region of India. Of 30 villages originally surveyed in 2001-02, when two had such roads, a further nine received them between January 2007 and December 2009...

India's rural roads program, Pradhan Mantri Gram Sadak Yojana, aims to draw villagers into the mainstream by improving not only their terms of trade, but also their educational attainments and health. Treating each all-weather feeder road as an isolated element within the larger network, and...

An AIDS epidemic threatens Ethiopia with a long wave of premature adult mortality, and thus with an enduring setback to capital formation and economic growth. The authors develop a two-sector model with three overlapping generations and intersectorally mobile labor, in which young adults...

The AIDS epidemic threatens Kenya with a long wave of premature adult mortality, and thus with an enduring setback to the formation of human capital and economic growth. To investigate this possibility, the authors develop a model with three overlapping generations, calibrate it to the...

The authors analyze the example of a landlord, a moneylender, and a tenant (the landlord having access to finance on the same terms as the money lender). It is natural to assume that the landlord has first claim on the tenant's output (as a rule, if they live in the same village, he may have...

Noting that South Africa may be one of the few African countries that could contribute to mitigating climate change, the authors explore the impact of a carbon tax relative to alternative energy taxes on economic welfare. Using a disaggregate general-equilibrium model of the South African...

After an impressive acceleration in growth and poverty reduction since the mid-1990s, many African countries continue to register robust growth in the aftermath of the global financial crisis. Will this growth persist, given the tepid recovery in developed countries, numerous weather shocks, and...

This paper develops a dynamic stochastic general equilibrium model to analyze and derive simple budget rules in the face of volatile public revenue from natural resources in a low-income country like Niger. The simulation results suggest three policy lessons or rules of thumb. When a resource...

The authors develop a simple analytical framework that shows how the composition of public spending affects economic growth. Distinguishing between productive and unproductive government spending (that which complements private sector productivity and that which does not), they show that...