|
| |
| Tommy Andersson, Albin Erlanson, Robert Östling and Daniel Spiro |
| |
| ''A Simple Model of the Production-health Trade-off During an Epidemic'' |
| ( 2022, Vol. 42 No.1 ) |
| |
| |
| The purpose of this paper is to simplify the standard framework integrating epidemiological and economic concerns. We present a model where a social planner can influence the spread-intensity of an infection wave through a single parameter. The spread-intensity affects both economic activity and population health. We study the planner's optimal trade-off between upholding economic activity and preserving population health and show analytically that the solution has a natural interpretation with intuitive comparative statics. |
| |
| |
| Keywords: Covid-19 pandemic, SI-model, economic activity, health, optimal policy |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
I1 - Health: General |
| |
| Manuscript Received : May 31 2021 | | Manuscript Accepted : Feb 20 2022 |
|
