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Bridging the COVID-19 Data and the Epidemiological Model using Time Varying Parameter SIRD Model

Author

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  • Cem Cakmaklı

    (Koc University, Turkey; Rimini Centre for Economic Analysis)

  • Yasin Simsek

    (Duke University, USA)

Abstract

This paper extends the canonical model of epidemiology, the SIRD model, to allow for time-varying parameters for real-time measurement and prediction of the trajectory of the Covid-19 pandemic. Time variation in model parameters is captured using the generalized autoregressive score modeling structure designed for the typical daily count data related to the pandemic. The resulting specification permits a flexible yet parsimonious model with a low computational cost. The model is extended to allow for unreported cases as well. Results suggest that these cases' effects on the parameter estimates diminish with the increasing number of testing. Full sample results show that the flexible framework captures the successive waves of the pandemic accurately. A real-time exercise indicates that the proposed structure delivers timely and precise information on the pandemic's current stance. This superior performance, in turn, transforms into accurate predictions of the confirmed cases.

Suggested Citation

  • Cem Cakmaklı & Yasin Simsek, 2020. "Bridging the COVID-19 Data and the Epidemiological Model using Time Varying Parameter SIRD Model," Working Paper series 20-23, Rimini Centre for Economic Analysis, revised Feb 2021.
    • Handle: RePEc:rim:rimwps:20-23
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    References listed on IDEAS

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    Cited by:

    1. Muhammed A. Yildirim & Cem Cakmakli & Selva Demiralp & Sebnem Kalemli-Ozcan & Sevcan Yesiltas, 2021. "The Economic Case for Global Vaccinations: An Epidemiological Model with International Production Networks," CID Working Papers 390, Center for International Development at Harvard University.
    2. Alexander Chudik & M. Hashem Pesaran & Alessandro Rebucci, 2021. "COVID-19 Time-Varying Reproduction Numbers Worldwide: An Empirical Analysis of Mandatory and Voluntary Social Distancing," Globalization Institute Working Papers 407, Federal Reserve Bank of Dallas.

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    More about this item

    Keywords

    Covid-19; SIRD; Observation driven models; Score models; Count data; Time-varying parameters;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • I19 - Health, Education, and Welfare - - Health - - - Other

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