Tommy Andersson
Professor
Optimal Trade-Off between Economic Activity and Health during an Epidemic
Author
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.
Department/s
- Department of Economics
Publishing year
2020
Language
English
Publication/Series
Working Papers
Issue
2020:8
Links
Document type
Working paper
Topic
- Economics
Keywords
- Covid-19 pandemic
- SI-model
- economic activity
- health
- optimal policy
- E23
- E27
- E60
- E65
Status
Published