Health versus wealth: On the distributional effects of controlling a pandemic

Andrew Glover, Jonathan Heathcote, Dirk Krueger and José-Víctor Ríos-Rull

Journal of Monetary Economics, 2023, vol. 140, issue C, 34-59

Abstract: To slow the COVID-19 virus, many countries shut down parts of the economy. Older individuals have the most to gain from slowing virus diffusion. Younger workers in shuttered sectors have most to lose. We build a model in which economic activity and disease progression are jointly determined. Individuals differ by age, sector and health status. Disease transmission occurs at work, at home, through consumption, and in hospitals. Optimal economic shutdowns in 2020 are milder when taxes are distortionary, and when the government does not have access to debt. A harder, shorter shutdown is preferred when vaccines become available in early 2021.

Keywords: COVID-19; Shutdowns; Redistribution; Economic policy (search for similar items in EconPapers)
JEL-codes: E1 H12 I14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
Working Paper: Health versus Wealth: On the Distributional Effects of Controlling a Pandemic (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:140:y:2023:i:c:p:34-59

DOI: 10.1016/j.jmoneco.2023.07.003

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