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Technical Note - BTable T3(b)HIV/AIDS and life expectancy at birth, 1980–98, IV estimatesRegressors Life Expectancy at Birth, 1998(1) (2) (3) (4) (5)Constant -30.48 -12.94 -31.21 -32.44 -29.65(12.06) (15.90) (8.62) (9.53) (12.35)Life expectancy, 1980 (years) 2.24 1.54 2.53 2.54 2.49(0.42) (0.56) (0.28) (0.31) (0.41)Life expectancy, 1980 Squared -0.011 -0.004 -0.014 -0.014 -0.014(0.004) (0.005) (0.002) (0.003) (0.003)HIV prevalence 1998 (per 100 -0.78 -0.75population aged 15–64 in 1998) (0.15) (0.14)Average annual increase incumulative AIDS cases 1980-98 18.61(per 100 population aged 15-64 -(2.98)in 1998)Number of observations 112 76 105 73 73Hausman Test-Statistic 5.11 0.80 57.29R-squared 0.874 0.891 0.928 0.935 0.923Source: Author’s calculations. Heteroskedasticity-corrected standard errors reported in parentheses.Specifications (3)-(5) are estimated using instrumental variables for the HIV/AIDS variables.Instruments: HDI80, HDI80-squared, Year of the start of the AIDS epidemic, proportion of population thatis Muslim, the degree of openness of an economy (ratio of the sum of imports and exports to GDP in1980), the mean years of schooling in population aged 15 years and above (1980), the ratio of lifeexpectancyof females to that of males, and the rate of growth of population during 1970-80.Table T4HIV/AIDS and the adult literacy rate, 1980–98, OLS estimatesRegressors Adult Literacy Rate, 1998(1) (2) (3) (4) (5)Constant 10.35 10.40 10.65 11.14 10.97(3.07) (3.62) (3.10) (3.63) (3.64)Adult literacy rate, 19801.44 1.42 1.39 1.34 1.36(0.11) (0.13) (0.11) (0.13) (0.13)Adult literacy rate squared, -0.006 -0.005) -0.005 -0.005 -0.0051980 (0.001) (0.001 (0.001) (0.001) (0.001)HIV prevalence 1998 (per 100 0.09 0.12population aged 15–64 in 1998) (0.06) (0.06)Average annual increase incumulative AIDS cases 1980–98 2.23(per 100 population aged 15–64 (1.05)in 1998)Number of observations 112 75 112 75 75R-squared 0.965 0.965 0.966 0.966 0.965Source: Author’s calculations. Heteroskedasticity-corrected standard errors reported in parentheses.IV Specification found to be statistically indistinguishable from OLS specification using a Hausman test.<strong>Regional</strong> Human Development <strong>Report</strong>180 HIV/AIDS and Development in South <strong>Asia</strong> 2003

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