Accelerating the Development of an AIDS Vaccine - Supporting Developing Countries as an Alternative?

Abstract

This paper examine whether funding developing countries' own vaccine-related activities can resolve shortcomings in vaccine research. We analyse the interaction between the best-shot public good developing an AIDS vaccine and financial assistance in a Nash game. The paper shows that income policies are not hampered. Consequently suboptimal provision can be overcome. It indicates that financing developing countries' efforts in vaccine research is an alternative to uncoordinated research among countries to accelerate the development of a vaccine.

Keywords: AIDS vaccine, best-shot public good, foreign aid

JEL Classification: C72, H87, I18