On the Macrodynamics of COVID-19 Vaccination

Soumya Datta (soumya@econ.sau.ac.in) and C. Saratchand (chandcsarat@gmail.com)
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Soumya Datta: South Asian University, New Delhi
C. Saratchand: Satyawati College, University of Delhi

Working Papers from National Institute of Public Finance and Policy

Abstract: We set up a macroeconomic epidemiological (SIR) model to evaluate the role of vaccination in the interactive dynamics of COVID-19 and the economy. We analytically examine the existence and local stability properties of the four steady states and find strong support for a locally stable interior equilibrium where the economy grows in the continued presence of the pandemic. We also find that it might be possible to attain a pandemic-free economic revival only if the rate of recovery from infection is faster than a threshold level. We examine, both analytically and numerically, the impact of various types of policy interventions, including non-pharmaceutical interventions involving restrictions on economic activities (like lockdowns and travel restrictions) as well as speeding up the rate of vaccination. We find that under reasonable parameter configurations, a combination of large-scale vaccination as well as non-pharmaceutical interventions are required to meet the twin objectives of controlling the pandemic and reviving the economy.

Keywords: COVID-19; health; stability; vaccination; non pharmaceutical intervention (search for similar items in EconPapers)
JEL-codes: E10 E61 I10 I18 (search for similar items in EconPapers)
Pages: 21
Date: 2021-08
New Economics Papers: this item is included in nep-hea, nep-isf and nep-mac
Note: Working Paper 352, 2021
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Citations: View citations in EconPapers (1)

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