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Cost Optimization in the SIS Model of Infectious Disease with Treatment

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  • Goldman, Steven M.
  • Lightwood, James

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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Bibliographic Info

Paper provided by Department of Economics, Institute for Business and Economic Research, UC Berkeley in its series Department of Economics, Working Paper Series with number qt0r88q87t.

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Date of creation: 01 Jan 1996
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Handle: RePEc:cdl:econwp:qt0r88q87t

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Keywords: cost optimization; infectious disease; SIS model; Medicine and Health Sciences; Social and Behavioral Sciences;

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Cited by:
  1. Daron Acemoglu & Azarakhsh Malekian & Asuman Ozdaglar, 2013. "Network Security and Contagion," NBER Working Papers 19174, National Bureau of Economic Research, Inc.
  2. David Aadland & David Finnoff & Kevin X.D. Huang, 2010. "Syphilis Cycles," Vanderbilt University Department of Economics Working Papers 1006, Vanderbilt University Department of Economics.
  3. David Aadland & David Finnoff & Kevin x.d. Huang, 2013. "The Equilibrium Dynamics of Economic Epidemiology," Vanderbilt University Department of Economics Working Papers 13-00003, Vanderbilt University Department of Economics.
  4. Toxvaerd, Flavio, 2010. "Recurrent Infection and Externalities in Prevention," CEPR Discussion Papers 8112, C.E.P.R. Discussion Papers.
  5. 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.
  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. St├ęphane Mechoulan, 2007. "Market structure and communicable diseases," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 468-492, May.
  9. Telalagic, S., 2012. "Optimal Treatment of an SIS Disease with Two Strains," Cambridge Working Papers in Economics 1229, Faculty of Economics, University of Cambridge.
  10. 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.

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