Arbeitspapier

Static and Dynamic Inefficiencies in an Optimizing Model of Epidemics

In an optimizing model of epidemics several externalities arise when agents shield to avoid infection. Optimizing behaviour delays herd immunity but also reduces overall infections to approximately the minimum consistent with herd immunity. For reasonable parameter values, and with no vaccine, we find that agents delay too much because of a "rat race to shield": they shield too much in the hope that others catch the disease and reach herd immunity. This and other externalities drive large wedges between private and social outcomes. The expectation of a vaccine reverses the effects, and agents shield too little.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 13844

Klassifikation
Wirtschaft
Relation of Economics to Other Disciplines
Health: General
Demographic Economics: Public Policy
Allocative Efficiency; Cost-Benefit Analysis
Externalities
Thema
SIR models
matching model
COVID-19
social distancing
rat race
herd immunity

Ereignis
Geistige Schöpfung
(wer)
Garibaldi, Pietro
Moen, Espen R.
Pissarides, Christopher A.
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Garibaldi, Pietro
  • Moen, Espen R.
  • Pissarides, Christopher A.
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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