Agricultural Economics Department


Date of this Version



Paper prepared for presentation at the Meetings of the International Association of Agricultural Economists, Durban, South Africa, August 2003. Copyright © 2003 Rui Hang, Lilyan Fulginiti and E. Wesley F. Peterson. Used by permission.


A three period overlapping generations model is developed to investigate the impact of shorter life expectancy due to disease, on human capital investment decisions and income growth. This research is particularly relevant to Sub-Saharan Africa given the dramatic reduction in life expectancy due to HIV/AIDS and the potential lasting effects on growth. Our results indicate that as life expectancy shortens so does schooling inducing a lower growth rate of income. These relationships are even more pronounced for the African continent than for the rest of the world.