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Adaptive targeted infectious disease testing

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  • Maximilian Kasy
  • Alexander Teytelboym

Abstract

We show how to efficiently use costly testing resources in an epidemic, when testing outcomes can be used to make quarantine decisions. If the costs of false quarantine and false release exceed the cost of testing, the optimal myopic testing policy targets individuals with an intermediate likelihood of being infected. A high cost of false release means that testing is optimal for individuals with a low probability of infection, and a high cost of false quarantine means that testing is optimal for individuals with a high probability of infection. If individuals arrive over time, the policy-maker faces a dynamic trade-off: using tests for individuals for whom testing yields the maximum immediate benefit vs spreading out testing capacity across the population to learn prevalence rates thereby benefiting later individuals. We describe a simple policy that is nearly optimal from a dynamic perspective. We briefly discuss practical aspects of implementing our proposed policy, including imperfect testing technology, appropriate choice of prior, and non-stationarity of the prevalence rate.

Suggested Citation

  • Maximilian Kasy & Alexander Teytelboym, 2020. "Adaptive targeted infectious disease testing," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(Supplemen), pages 77-93.
  • Handle: RePEc:oup:oxford:v:36:y:2020:i:supplement_1:p:s77-s93.
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    File URL: http://hdl.handle.net/10.1093/oxrep/graa018
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    References listed on IDEAS

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    1. Maximilian Kasy & Alexander Teytelboym, 2020. "Adaptive Combinatorial Allocation," Papers 2011.02330, arXiv.org.
    2. Maximilian Kasy & Anja Sautmann, 2021. "Adaptive Treatment Assignment in Experiments for Policy Choice," Econometrica, Econometric Society, vol. 89(1), pages 113-132, January.
    3. William V. Padula, 2020. "Why Only Test Symptomatic Patients? Consider Random Screening for COVID-19," Applied Health Economics and Health Policy, Springer, vol. 18(3), pages 333-334, June.
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    Citations

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    Cited by:

    1. Mark Whitmeyer, 2021. "An imperfect test for a virus can Be worse than No test at all," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1347-1360, June.
    2. Joshua S. Gans, 2022. "Test sensitivity for infection versus infectiousness of SARS‐CoV‐2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1880-1887, September.
    3. Sanjay Jain & Jónas Oddur Jónasson & Jean Pauphilet & Kamalini Ramdas, 2023. "Robust combination testing: methods and application to COVID-19 detection," Economics Series Working Papers 1009, University of Oxford, Department of Economics.
    4. Bahety, Girija & Bauhoff, Sebastian & Patel, Dev & Potter, James, 2021. "Texts don’t nudge: An adaptive trial to prevent the spread of COVID-19 in India," Journal of Development Economics, Elsevier, vol. 153(C).
    5. Ely, Jeffrey & Galeotti, Andrea & Jann, Ole & Steiner, Jakub, 2021. "Optimal test allocation," Journal of Economic Theory, Elsevier, vol. 193(C).
    6. Lipnowski, Elliot & Ravid, Doron, 2021. "Pooled testing for quarantine decisions," Journal of Economic Theory, Elsevier, vol. 198(C).
    7. Joren Raymenants & Caspar Geenen & Jonathan Thibaut & Klaas Nelissen & Sarah Gorissen & Emmanuel Andre, 2022. "Empirical evidence on the efficiency of backward contact tracing in COVID-19," Nature Communications, Nature, vol. 13(1), pages 1-13, December.
    8. Masashige Hamano & Munechika Katayama & So Kubota, 2020. "COVID-19 Misperception and Macroeconomy," Working Papers 2016, Waseda University, Faculty of Political Science and Economics.
    9. Bakker, Hannah & Bindewald, Viktor & Dunke, Fabian & Nickel, Stefan, 2023. "Logistics for diagnostic testing: An adaptive decision-support framework," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1120-1133.
    10. Francesco Flaviano Russo, 2020. "Testing Policies During an Epidemic," CSEF Working Papers 591, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    11. Daron Acemoglu & Ali Makhdoumi & Azarakhsh Malekian & Asuman Ozdaglar, 2020. "Testing, Voluntary Social Distancing and the Spread of an Infection," NBER Working Papers 27483, National Bureau of Economic Research, Inc.

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