A Theoretical and Empirical Investigation of the Effects of Public Health Subsidies for STD Testing

Abstract

The paper investigates, both theoretically and empirically, the private demand for STD testing and for protection against infection with emphasis on testing for the AIDS virus (HIV) and on the effects of public subsidies for such testing on the incidence of sexually transmitted diseases. We discuss the theoretical conditions under which subsidizing testing either increases or decreases disease incidence and provide evidence on the empirical significance of those conditions.