The AIDS antibody test can identify people who have been infected with the HIV virus and are capable of spreading AIDS. This test, however, raises issues related to the economics of property rights. The basic issue is whether economic theory can rationalize the government's encouragement of AIDS testing for high-risk groups while discouraging private testing of low-risk groups. Current policies provide a mixture of redistributive government monitoring of private, for-profit AIDS testing and counseling clinics that treat primarily low-risk individuals and government subsidies to not-for-profit clinics which typically test and counsel high-risk individuals. Most AIDS testing clinics, whether public or private, protect the confidentiality of test results. Confidentiality makes economic sense only if AIDS victims can be made to pay for the injuries they impose on others. The tort liability system breaks down in the case of a person who has AIDS. An AIDS victim who infects another will go bankrupt or even die before being sued for any damage he or she creates. Also, for communicable and sexually transmitted diseases, it is extremely difficult for infected persons to prove who gave them the disease. In addition, litigants for AIDS face at least a 5-year time lag between exposure to the virus and development of the disease. Consequently, regulations guaranteeing strict confidentiality of AIDS test results are not appropriate. 17 references