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Assessing the Optimality of a COVID Lockdown in the United States

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  • Anna Scherbina

    (Brandeis University)

Abstract

Though COVID vaccines have been available since December 2020, the rate at which they are administered remains slow, and in the meantime the pandemic continues to claim about as many lives every day as the 9/11 tragedy. I estimate that with the promised rate of vaccinations, if no additional non-pharmaceutical interventions are implemented, 203 thousand additional lives will be lost and the future cost of the pandemic will reach $1.3 trillion, or 6% of GDP. Using a cost-benefit analysis, I assess whether it is optimal for the United States to follow the lead of many European countries and introduce a nation-wide lockdown. I find that a lockdown would be indeed optimal and, depending on the assumptions, it should last between two and four weeks and will generate a net benefit of up to $653 billion.

Suggested Citation

  • Anna Scherbina, 2021. "Assessing the Optimality of a COVID Lockdown in the United States," Economics of Disasters and Climate Change, Springer, vol. 5(2), pages 177-201, July.
    • Handle: RePEc:spr:ediscc:v:5:y:2021:i:2:d:10.1007_s41885-021-00083-6
    DOI: 10.1007/s41885-021-00083-6
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    References listed on IDEAS

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    Cited by:

    1. Yasushi Iwamoto, 2021. "Welfare economics of managing an epidemic: an exposition," The Japanese Economic Review, Springer, vol. 72(4), pages 537-579, October.
    2. Gagnon, Joseph E. & Kamin, Steven B. & Kearns, John, 2023. "The impact of the COVID-19 pandemic on global GDP growth," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).

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    More about this item

    Keywords

    COVID-19; Pandemic curve; Cost-benefit analysis; Non-pharmaceutical interventions; Public health policy; Lockdown; Vaccinations;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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