Optimal Trade-Off Between Economic Activity and Health During an Epidemic
Research output: Other contribution › Web publication/Blog post
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.
|Research areas and keywords||
Subject classification (UKÄ) – MANDATORY
|Number of pages||12|
|Publication status||Unpublished - 2020 May 18|