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The welfare implications of reducing malaria in Ghana: A dynamic general equilibrium analysis
Erez Yerushalmi*, Priscillia Hunt**, and Stijn Hoorens***,
* Department of Economics, ÌÇÐÄTV University
** Department of Economics and Statistics, RAND, USA
*** RAND Europe
Abstract
The paper develops a modelling approach to estimate the impact of malaria disease and its prevention on the overall economy, with Ghana as a case study. Our dataset includes 45 households, which are disaggregated by five income level quintiles, and nine geographic regions that have different Malaria prevalence. The dynamic, multi-sector multi-agent general equilibrium model is integrated with a health model, linking the labour resource with ill-health. The health model includes two components: (1) population projection for the size of the labour force, using the cohort-component method that accounts for changes in fertility, migration, and mortality; (2) a labour effectiveness component that takes into account the impact of malaria on the worker’s productivity for various malaria-specific health statuses. The model estimates the marginal benefits for various preventive scenarios to a baseline, at individual and regional levels. This approach could be similarly used for other diseases, e.g., TB and HIV/AIDS.
This paper is funded by GlaxsoSmithKline (GSK)