On the Management of Population Immunity

Flavio Toxvaerd and Robert Rowthorn

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This paper considers a susceptible-infected-recovered type model of infectious diseases, such as COVID-19 or swine flu, in which costly treatment or vaccination confers immunity on recovered individuals. Once immune, individuals indirectly protect the remaining susceptibles, who benefit from a measure of herd immunity. Treatment and vaccination directly induce such herd immunity, which builds up over time. Optimal treatment is shown to involve intervention at early stages of the epidemic, while optimal vaccination defers intervention to later stages. Thus, while treatment and vaccination have superficial similarities, their effects and desirability at different stages of the epidemic are radically different. Equilibrium vaccination is qualitatively similar to socially optimal vaccination, while equilibrium treatment differs in nature from socially optimal treatment. The optimal policies are compared to traditional non-economic public health interventions which rely on herd immunity thresholds.

Keywords: Economic epidemiology; herd immunity; treatment; vaccination; externalities (search for similar items in EconPapers)
JEL-codes: C73 I18 (search for similar items in EconPapers)
Date: 2020-08-19
New Economics Papers: this item is included in nep-hea
Note: fmot2, rer3
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:2080

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