Tommy Andersson
Professor
Optimal Trade-Off between Economic Activity and Health during an Epidemic
Författare
Summary, in English
This paper considers a simple model where a social planner can influence the spread-intensity of an infection wave, and, consequently, also the economic activity and population health, through a single parameter. Population health is assumed to only be negatively affected when the number of simultaneously infected exceeds health care capacity. The main finding is that 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.
Avdelning/ar
- Nationalekonomiska institutionen
Publiceringsår
2020
Språk
Engelska
Publikation/Tidskrift/Serie
Working Papers
Issue
2020:8
Länkar
Dokumenttyp
Working paper
Ämne
- Economics
Nyckelord
- Covid-19 pandemic
- SI-model
- economic activity
- health
- optimal policy
- E23
- E27
- E60
- E65
Status
Published