Health and Growth: Causality through Education

Purpose--The paper theoretically and empirically investigates the impact on human capital investment decisions and income growth of lowered life expectancy as a result of HIV/AIDS and other diseases. Design/methodology/approach--The theoretical model is a three-period overlapping generations model where individuals go through three stages in their life, namely, young, adult and old. The model extends existing theoretical models by allowing the probability of premature death to differ for individuals at different life stage, and by allowing for stochastic technological advances. The empirical investigation focuses on the effect of HIV/AIDS on life expectancy and on the role of health on educational investments and growth. We address potential endogeneity by using various strategies, such as controlling for country specific time-invariant unobservables and by using the male circumcision rate as an instrumental variable for HIV/AIDS prevalence. Findings--We show theoretically that an increased probability of premature death leads to less investment in human capital, and consequently slower growth. Empirically we show that HIV/AIDS has resulted in a substantial decline in life expectancy in African countries and these falling life expectancies are indeed associated with lower educational attainment and slower economic growth world wide. Originality/value--The theoretical and empirical findings reveal a causal link flowing from health to growth, which has been largely overlooked by the existing literature. The main implication is that health investments, that decrease the incidence of diseases like HIV/AIDS resulting on increases in life expectancy, through its complementarity with human capital investments lead to long run growth..

ENHANCEMENT OF THE FAA’s ON-LINE WILDLIFE AIRCRAFT STRIKE DATABASE WITH AN INTERACTIVE GRAPHICS CAPABILITY

Embry-Riddle Aeronautical University (Prescott, AZ, USA) was awarded a grant from the William J. Hughes FAA Technical Center in October 1999 to develop and maintain a web site dealing with a wide variety of airport safety wildlife concerns. Initially, the web site enabled users to access related topics such as wildlife management (at/near airports), bird identification information, FAA wildlife management guidelines, education, pictures, current news, upcoming meetings and training, available jobs and discussion/forum sections. In April 2001, the web site was augmented with an on-line wildlife strike report (FAA Form 5200-7). Upon submittal on-line, “quick look” email notifications are sent to concerned government personnel. The distribution of these emails varies as to whether there was damage, human injuries/fatalities, and whether feather remains were collected and will be sent to the Smithsonian Institution for identification. In July 2002, a real-time on-line query system was incorporated to allow federal and local government agencies, airport and operator personnel, and USDA and airport wildlife biologists to access this database (which as of June 2005 contains 68,288 researched strike reports added to at a rate of approximately 500 strike reports/month) to formulate strategies to reduce the hazards wildlife present to aviation. To date (June 2005), over 15,000 on-line real-time queries were processed. In June 2004, ERAU was authorized to develop a graphical interface to this on-line query system. Current capabilities include mapping strikes (by species) on the US map, each of the contiguous 48 state maps (with AK and HI being added), and airport diagrams of the major metropolitan airports as well as the next 46 airports with the most reported strikes The latter capability depicts strikes by runway in plan as well as in elevation view. Currently under development is the ability to view time-sequenced strikes on the US map. This extensive graphical interface will give analysts the ability to view strike patterns with a wide variety of variables including species, seasons, migration patterns, etc. on US and state maps and airport diagrams.