Judith Lammers
| Date of Ph.D.defense: | 14 March 2008 |
| Title of thesis: | HIV/AIDS, Risk and Intertemporal Choice |
| ISBN: | 978 90 5668 210 1 |
| Promotor: | Prof.dr. A.C. Meijdam |
Abstract:
This dissertation is one of the first attempts to measure the effect of the AIDS epidemic on saving and risk behavior of individuals. It provides valuable insights for designing policies, both for prevention and for improving the economic situation of HIV affected households and society as a whole.
One of her major findings is that the saving behavior of individuals in HIV affected countries is influenced differently according to various stages of the epidemic. Contrary to earlier assumptions, during a well-established AIDS epidemic savings may rise as people start anticipating illness related costs, the HIV anticipatory saving motive. This increases the coping possibilities of individuals that contract the virus. However, the experimental data show that HIV positive individuals do not save enough to offset the expected future illness related costs.
From a methodological point of view, this study advocates that the measurement of time preferences should be corrected for perceptions of the length of life, risk aversion and anticipated declines in future consumption possibilities. Including these factors will improve estimates of time preferences and thus conclusions made thereon.
Her experimental data also show that unprotected sexual behavior appears to be partly an economic decision explicable by individual risk and time preferences. Therefore education on prevention methods alone is not sufficient to prevent the further spread of HIV. Informing individuals on both the actual infection risk and the actual economic costs, e.g. the reduced future consumption possibilities, will further reduce unprotected sexual behavior and stimulate anticipatory savings. The latter will increase the coping possibilities of individuals that do contract the virus, improving social welfare in the countries hardest hit.
Global / English