Optimal Trade-Off between Economic Activity and Health during an Epidemic
(2020) In Working Papers- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/19de0677-ab72-4c4c-8789-790b459d8e05
- author
- Andersson, Tommy LU ; Erlanson, Albin ; Spiro, Daniel and Östling, Robert
- organization
- publishing date
- 2020
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- Covid-19 pandemic, SI-model, economic activity, health, optimal policy, E23, E27, E60, E65
- in
- Working Papers
- issue
- 2020:8
- pages
- 13 pages
- external identifiers
-
- scopus:85095005308
- language
- English
- LU publication?
- yes
- id
- 19de0677-ab72-4c4c-8789-790b459d8e05
- alternative location
- https://swopec.hhs.se/lunewp/abs/lunewp2020_008.htm
- date added to LUP
- 2020-05-25 11:08:55
- date last changed
- 2020-11-13 04:04:08
@misc{19de0677-ab72-4c4c-8789-790b459d8e05,
abstract = {{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.}},
author = {{Andersson, Tommy and Erlanson, Albin and Spiro, Daniel and Östling, Robert}},
keywords = {{Covid-19 pandemic; SI-model; economic activity; health; optimal policy; E23; E27; E60; E65}},
language = {{eng}},
note = {{Working Paper}},
number = {{2020:8}},
series = {{Working Papers}},
title = {{Optimal Trade-Off between Economic Activity and Health during an Epidemic}},
url = {{https://swopec.hhs.se/lunewp/abs/lunewp2020_008.htm}},
year = {{2020}},
}