Optimal Trade-Off Between Economic Activity and Health During an Epidemic

Tommy Andersson; Albin  Erlanson; Daniel  Spiro; Robert Östling

Optimal Trade-Off Between Economic Activity and Health During an Epidemic

Tommy Andersson, Albin Erlanson, Daniel Spiro, Robert Östling

Department of Economics

Research output: Other contribution › Web publication/Blog post › Research

Abstract

Thispaperconsidersasimplemodelwhereasocialplannercaninﬂuencethespread-intensity of an infection wave, and, consequently, also the economic activity and population health, throughasingleparameter. Populationhealthisassumedtoonlybenegativelyaffectedwhen thenumberofsimultaneouslyinfectedexceedshealthcarecapacity. Themainﬁndingisthat if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time.

Translated title of the contribution	Optimal trade-off mellan ekonomisk aktivitet och hälsa under en epidemi
Original language	English
Number of pages	12
Publication status	Unpublished - 2020 May 18

Subject classification (UKÄ)

Economics

Free keywords

Covid-19 pandemic
SI-model
economic activity
health
optimal policy

Access to Document

https://arxiv.org/abs/2005.07590Licence: Unspecified

Cite this

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title = "Optimal Trade-Off Between Economic Activity and Health During an Epidemic",

abstract = "Thispaperconsidersasimplemodelwhereasocialplannercaninﬂuencethespread-intensity of an infection wave, and, consequently, also the economic activity and population health, throughasingleparameter. Populationhealthisassumedtoonlybenegativelyaffectedwhen thenumberofsimultaneouslyinfectedexceedshealthcarecapacity. Themainﬁndingisthat if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time. ",

keywords = "Covid-19 pandemic, SI-model, economic activity, health, optimal policy",

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AU - Andersson, Tommy

AU - Erlanson, Albin

AU - Spiro, Daniel

AU - Östling, Robert

PY - 2020/5/18

Y1 - 2020/5/18

N2 - Thispaperconsidersasimplemodelwhereasocialplannercaninﬂuencethespread-intensity of an infection wave, and, consequently, also the economic activity and population health, throughasingleparameter. Populationhealthisassumedtoonlybenegativelyaffectedwhen thenumberofsimultaneouslyinfectedexceedshealthcarecapacity. Themainﬁndingisthat if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time.

AB - Thispaperconsidersasimplemodelwhereasocialplannercaninﬂuencethespread-intensity of an infection wave, and, consequently, also the economic activity and population health, throughasingleparameter. Populationhealthisassumedtoonlybenegativelyaffectedwhen thenumberofsimultaneouslyinfectedexceedshealthcarecapacity. Themainﬁndingisthat if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time.

KW - Covid-19 pandemic

KW - SI-model

KW - economic activity

KW - health

KW - optimal policy

M3 - Web publication/Blog post

ER -

Optimal Trade-Off Between Economic Activity and Health During an Epidemic

Abstract

Subject classification (UKÄ)

Free keywords

Access to Document

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Cite this