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Cost Optimization in the SIS Model of Infectious Disease with Treatment

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Author Info
Steven M. Goldman and James Lightwood.

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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 a tendency towards decreased levels of treatment in the presence of 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 potentially large increases in the equilibrium rate of infection.

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Paper provided by University of California at Berkeley in its series Economics Working Papers with number 96-245.

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Date of creation: 01 Jan 1996
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Handle: RePEc:ucb:calbwp:96-245

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  1. Geoffard, P.Y. & Philipson, T., 1995. "Disease Eradication: Private vs. Public Vaccination," DELTA Working Papers 95-09, DELTA (Ecole normale supérieure).
  2. Brito, Dagobert L. & Sheshinski, Eytan & Intriligator, Michael D., 1991. "Externalities and compulsary vaccinations," Journal of Public Economics, Elsevier, vol. 45(1), pages 69-90, June. [Downloadable!] (restricted)
  3. Philipson, Tomas & Posner, Richard A, 1994. "Public Spending on AIDS Education: An Economic Analysis," Journal of Law & Economics, University of Chicago Press, vol. 37(1), pages 17-38, April.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Michael Hoel & Scott Barrett, 2004. "Optimal Disease Eradication," Working Papers 2004.50, Fondazione Eni Enrico Mattei. [Downloadable!]
  2. Barrett, Scott & Hoel, Michael, 2009. "Optimal Disease Eradication," HERO On line Working Paper Series 2003:23, Oslo University, Health Economics Research Programme. [Downloadable!]
  3. Stéphane Mechoulan, 2005. "Market Structure and Communicable Diseases," Working Papers tecipa-241, University of Toronto, Department of Economics. [Downloadable!]
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  4. Aadland, David & Finnoff, David, 2007. "Syphilis Cycles," MPRA Paper 8722, University Library of Munich, Germany. [Downloadable!]
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