We argue that reluctance to invest in drug treatments to fight the AIDS epidemics in developing countries is largely motivated by severe losses occurring from the future albeit uncertain appearance of a curative vaccine. We design a set of securities generating full insurance coverage against...

We simulate the Dynamic Stochastic General Equilibrium model of Mehra-Prescott [9] to establish the link between the anticipation of endowment drops (for instance a recession) and sudden market crashes. Contrary to the commonly accepted view that those crashes are solely driven by large drops in...

We argue that the recent large drops in households' savings in developing countries with high HIV/AIDS prevalence is associated with the spread of the disease. We also argue that the need to pay for individual treatments force large-scale withdrawals of households deposits, and that those large...