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Cost Optimization in the SIS Model of Infectious Disease with Treatment

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  • Goldman Steven Marc

    () (University of California, Berkeley)

  • Lightwood James

    () (University of California, San Francisco)

Abstract

We consider the intertemporal social optimization problem of minimizing the present value of the costs incurred from both disease and treatment. Though the analysis is complicated by the analytical failure of concavity, we are able to substantially characterize both the long run equilibria and the adjustment paths. The cost minimizing program is shown to exhibit decreased levels of treatment at higher disease levels. The socially optimal program is compared to individually rational behavior and the inefficiencies in private behavior from the infection externality are shown to cause increases in the equilibrium rate of infection.

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File URL: http://www.degruyter.com/view/j/bejeap.2002.2.issue-1/bejeap.2002.2.1.1007/bejeap.2002.2.1.1007.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 2 (2002)
Issue (Month): 1 (April)
Pages: 1-24

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Handle: RePEc:bpj:bejeap:v:topics.2:y:2002:i:1:n:4

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Cited by:
  1. Barrett, Scott & Hoel, Michael, 2009. "Optimal Disease Eradication," HERO On line Working Paper Series 2003:23, Oslo University, Health Economics Research Programme.
  2. Anderson, Soren & Laxminarayan, Ramanan & Salant, Stephen W., 2010. "Diversity or Focus? Spending to Combat Infectious Diseases When Budgets Are Tight," Discussion Papers dp-10-15, Resources For the Future.
  3. Aadland, David & Finnoff, David, 2007. "Syphilis Cycles," MPRA Paper 8722, University Library of Munich, Germany.
  4. Stéphane Mechoulan, 2007. "Market structure and communicable diseases," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 468-492, May.
  5. Gersovitz, Mark & Hammer, Jeffrey S., 2005. "Tax/subsidy policies toward vector-borne infectious diseases," Journal of Public Economics, Elsevier, vol. 89(4), pages 647-674, April.
  6. Michael Hoel & Scott Barrett, 2004. "Optimal Disease Eradication," Working Papers 2004.50, Fondazione Eni Enrico Mattei.
  7. Toxvaerd, Flavio, 2010. "Infection, Acquired Immunity and Externalities in Treatment," CEPR Discussion Papers 8111, C.E.P.R. Discussion Papers.
  8. Telalagic, S., 2012. "Optimal Treatment of an SIS Disease with Two Strains," Cambridge Working Papers in Economics 1229, Faculty of Economics, University of Cambridge.
  9. Toxvaerd, Flavio, 2010. "Recurrent Infection and Externalities in Prevention," CEPR Discussion Papers 8112, C.E.P.R. Discussion Papers.

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