Vaccination Spillovers in Economic Interactions

Fabian Siuda () and Thomas O. Zörner ()
Additional contact information
Fabian Siuda: Department of Economics, Vienna University of Economics and Business
Thomas O. Zörner: Oesterreichische Nationalbank

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

Abstract: Vaccinations are very effective in reducing the risk of infection on an individual level and thereby also reduce the risk of subsequently infecting others. This vaccination spillover effect reduces health related transaction costs in economic interactions and increases both consumer and producer surplus. In this paper, we quantify the valuation for vaccination spillovers for close contact services in an experimental setting. To generate a comprehensible scenario, we exploit the substitutability of testing for the disease and vaccination spillovers for infection risk reduction. We elicit individuals' willingness to pay (WTP) for testing and randomize the vaccination status of the service provider. The spillover effect of the service provider's vaccination is equivalent to 69% of the full infection risk reduction via testing. We demonstrate that higher levels of disease specific risk aversion increase both the WTP for testing and the vaccination spillover effect in levels, resulting in a constant relative vaccination spillover effect.

Keywords: vaccinations; vaccination spillover; transaction costs; infection risk; randomized experiment (search for similar items in EconPapers)
JEL-codes: D10 I10 I12 J20 (search for similar items in EconPapers)
Date: 2023-09
New Economics Papers: this item is included in nep-dcm, nep-exp and nep-hea
Note: PDF Document
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://research.wu.ac.at/ws/portalfiles/portal/46225245/WP347.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwwuw:wuwp347

Access Statistics for this paper

More papers in Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Department of Economics ().