BUS 082 Lecture Notes - Lecture 26: Udaipur District, Oportunidades, Underconsumption
17 Sep 2020
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Document Summary
Human capital set of skills/characteristics embodied in people that contribute to their productivity. Health and education are both objectives (outputs) and components (inputs) of development. Health and education as investments in the same individual (spillover benefits to investment) External benefits related to risk of contagion. Social costs of prevention are usually lower than costs of treatment. Private choice may lead to underconsumption (ignorance, liquidity constraints, etc. ) Sometimes international collaborative measures to avoid spread of diseases. Udaipur district, india: only 1% of children fully immunised. Social experiment: organisation of monthly camps and a kilo of lentils for immunisation. Incentive for governments to wait for other countries to spend the resources on vaccine research and development, after which the benefits will largely spill over as an externality. Companies developing vaccines may fear that once they have succeeded, they will be pushed to lower their margins.
