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A Simple Model of the Production-health Trade-off During an Epidemic

Author

Listed:
  • Tommy Andersson

    (Lund University)

  • Albin Erlanson

    (University of Essex)

  • Robert Östling

    (Stockholm School of Economics)

  • Daniel Spiro

    (Uppsala University)

Abstract

The purpose of this paper is to simplify the standard framework integrating epidemiological and economic concerns. We present a model where a social planner can influence the spread-intensity of an infection wave through a single parameter. The spread-intensity affects both economic activity and population health. We study the planner's optimal trade-off between upholding economic activity and preserving population health and show analytically that the solution has a natural interpretation with intuitive comparative statics.

Suggested Citation

  • Tommy Andersson & Albin Erlanson & Robert Östling & Daniel Spiro, 2022. "A Simple Model of the Production-health Trade-off During an Epidemic," Economics Bulletin, AccessEcon, vol. 42(1), pages 224-231.
    • Handle: RePEc:ebl:ecbull:eb-21-00509
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I1-P20.pdf
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    References listed on IDEAS

    as
    1. Favero, Carlo A. & Ichino, Andrea & Rustichini, Aldo, 2020. "Restarting the economy while saving lives under Covid-19," CEPR Discussion Papers 14664, Centre for Economic Policy Research.
    2. Miclo, Laurent & Weibull, Jörgen W. & Spiro, Daniel, 2020. "Optimal epidemic suppression under an ICU constraint," TSE Working Papers 20-1111, Toulouse School of Economics (TSE).
    3. Laurent Miclo & Daniel Spiro & Jörgen Weibull, 2020. "Optimal epidemic suppression under an ICU constraint ," Working Papers hal-02563023, HAL.
    4. Pollinger, Stefan, 2020. "Optimal Case Detection and Social Distancing Policies to Suppress COVID-19," TSE Working Papers 20-1109, Toulouse School of Economics (TSE).
    5. Callum Jones & Thomas Philippon & Venky Venkateswaran, 2021. "Optimal Mitigation Policies in a Pandemic: Social Distancing and Working from Home [A simple planning problem for covid-19 lockdown]," The Review of Financial Studies, Society for Financial Studies, vol. 34(11), pages 5188-5223.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • I1 - Health, Education, and Welfare - - Health

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