Optimal test allocation

Jeffrey Ely, Andrea Galeotti, Ole Jann and Jakub Steiner

Journal of Economic Theory, 2021, vol. 193, issue C

Abstract: A health authority chooses a binary action for each of several individuals that differ in their pretest probabilities of being infectious and in the additive losses associated with two types of decision errors. The authority is endowed with a portfolio of tests that differ in their sensitivities and specificities. We derive a simple necessary condition for optimality of test allocation. In special cases, precision parameters of the allocated test are monotone in the individuals' types. We characterize the marginal benefit of a test, provide an algorithmic solution for the test-allocation problem and consider the benefits of confirmatory testing.

Keywords: Test allocation; Epidemy control; Test sensitivity and specificity (search for similar items in EconPapers)
JEL-codes: D8 I18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:193:y:2021:i:c:s0022053121000533

DOI: 10.1016/j.jet.2021.105236

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