Economic Development, Risky Sexual Behavior, and AIDS Epidemics—Theory and Evidence

Xue Qiao; Xiaohan Zhong; Sin Sung

doi:10.3868/s060-001-012-0018-5

Front. Econ. China ›› 2012, Vol. 7 ›› Issue (3) : 407 -433. DOI: 10.3868/s060-001-012-0018-5

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Economic Development, Risky Sexual Behavior, and AIDS Epidemics—Theory and Evidence

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Abstract

In this paper, we present a simple theoretical model to investigate how economic development affects AIDS epidemics through its influence on individuals’ sexual behavior, building on the literature on economic growth with endogenous mortality concern. We employ provincial data from China on the incidence rate of AIDS between 2002 and 2008 to test the theoretical predictions. The findings are: (1) a rise in personal income/wealth induces more safe sexual activities and reduces the prevalence of AIDS; and (2) increases in public health expenditure do not have a significant positive impact on individuals’ preference of risky sexual activity over safe sexual activity.

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economic development / risky sexual behavior / AIDS epidemics

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Xue Qiao, Xiaohan Zhong, Sin Sung. Economic Development, Risky Sexual Behavior, and AIDS Epidemics—Theory and Evidence. Front. Econ. China, 2012, 7(3): 407-433 DOI:10.3868/s060-001-012-0018-5