Recurrent Infection and Externalities in Prevention
This paper studies a model of disease propagation in which agents can control their exposure to infection by engaging in costly preventive behavior. Agents are assumed to be fully rational, strategically sophisticated and forward-looking. I show that on the transition path, optimal behavior is Markovian, stationary and myopic and there are no contemporaneous externalities. In steady state, in which infection is endemic, there are strategic substitutes. Individuals over-expose themselves to infection, leading to sub-optimally high steady state disease prevalence. Infectivity-reducing measures such as pre-exposure prophylaxis lead to strictly worse steady state levels of disease prevalence. While revealed preferences show that the first-best level of welfare must increase, rational disinhibition, which makes increased exposure to infection a rational response to such measures, may lead to decreased welfare under decentralization.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
|Date of creation:||Nov 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- Steven M. Goldman and James Lightwood., 1996.
"Cost Optimization in the SIS Model of Infectious Disease with Treatment,"
Economics Working Papers
96-245, University of California at Berkeley.
- Goldman Steven Marc & Lightwood James, 2002. "Cost Optimization in the SIS Model of Infectious Disease with Treatment," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-24, April.
- Goldman, Steven M. & Lightwood, James, 1996. "Cost Optimization in the SIS Model of Infectious Disease with Treatment," Department of Economics, Working Paper Series qt0r88q87t, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Geoffard, Pierre-Yves & Philipson, Tomas, 1997. "Disease Eradication: Private versus Public Vaccination," American Economic Review, American Economic Association, vol. 87(1), pages 222-30, March.
- Francis, P.J. Peter J., 2004. "Optimal tax/subsidy combinations for the flu season," Journal of Economic Dynamics and Control, Elsevier, vol. 28(10), pages 2037-2054, September.
- Auld M. Christopher, 2006. "Estimating Behavioral Response to the AIDS Epidemic," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-29, April.
- M. Christopher Auld, 1996.
"Choices, Beliefs, and Infectious Disease Dynamics,"
938, Queen's University, Department of Economics.
- Mark Gersovitz & Jeffrey S. Hammer, 2004.
"The Economical Control of Infectious Diseases,"
Royal Economic Society, vol. 114(492), pages 1-27, 01.
- Toxvaerd, Flavio, 2010. "Recurrent Infection and Externalities in Prevention," CEPR Discussion Papers 8112, C.E.P.R. Discussion Papers.
- Oster, Emily, 2012.
"HIV and sexual behavior change: Why not Africa?,"
Journal of Health Economics,
Elsevier, vol. 31(1), pages 35-49.
- 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.
- Francis, Peter J., 1997. "Dynamic epidemiology and the market for vaccinations," Journal of Public Economics, Elsevier, vol. 63(3), pages 383-406, February.
- David Aadland, 2008.
2008 Meeting Papers
363, Society for Economic Dynamics.
- Aadland David & Finnoff David C. & Huang Kevin X.D., 2013. "Syphilis Cycles," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(1), pages 297-348, June.
- Aadland David & Finnoff David C. & Huang Kevin X.D., 2013. "Syphilis Cycles," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(1), pages 297-348, June.
- Aadland, David & Finnoff, David, 2007. "Syphilis Cycles," MPRA Paper 8722, University Library of Munich, Germany.
- David Aadland & David Finnoff & Kevin X.D. Huang, 2010. "Syphilis Cycles," Vanderbilt University Department of Economics Working Papers 1006, Vanderbilt University Department of Economics.
- Hartl, Richard F., 1987. "A simple proof of the monotonicity of the state trajectories in autonomous control problems," Journal of Economic Theory, Elsevier, vol. 41(1), pages 211-215, February.
- Emily Oster, 2005. "Sexually Transmitted Infections, Sexual Behavior, and the HIV/AIDS Epidemic," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 467-515, May.
- Kremer, Michael, 1996. "Integrating Behavioral Choice into Epidemiological Models of AIDS," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 549-73, May.
- Geoffard, P.Y. & Philipson, T., 1995.
"Rational Epidemics and their Public Control,"
DELTA Working Papers
95-15, DELTA (Ecole normale supérieure).
- Boulier Bryan L. & Datta Tejwant S. & Goldfarb Robert S, 2007. "Vaccination Externalities," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-27, May.
- Toxvaerd, Flavio, 2010. "Infection, Acquired Immunity and Externalities in Treatment," CEPR Discussion Papers 8111, C.E.P.R. Discussion Papers.
- Avner Ahituv & V. Joseph Hotz & Tomas Philipson, 1996. "The Responsiveness of the Demand for Condoms to the Local Prevalence of AIDS," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 869-897.
- Scott Barrett, 2003. "Global Disease Eradication," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 591-600, 04/05.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:8112. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.