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Pakasa Bary and Rani Setyodewanti
''Consumption-contagion dynamics during epidemic with voluntary social distancing''
( 2021, Vol. 41 No.2 )
This paper discusses causal dynamics between epidemic and consumption by incorporating different consumption behavior among those susceptible, infected and recovered from the disease. This paper finds that endogenous voluntary social distancing induces recession in the short-term, but limits the permanent output loss in the medium-term. It slows contagion, lowers the peak of active cases, reduces the total infections and deaths.
Keywords: epidemic, pandemic, COVID-19, recession, consumption, SIR model
JEL: I1 - Health: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Dec 19 2020 Manuscript Accepted : Apr 09 2021

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