Optimal interventions in networks during a pandemic

Roland Pongou, Guy Tchuente and Jean-Baptiste Tondji ()
Additional contact information
Jean-Baptiste Tondji: The University of Texas Rio Grande Valley

Journal of Population Economics, 2023, vol. 36, issue 2, No 10, 847-883

Abstract: Abstract We develop a model of optimal lockdown policy for a social planner who balances population health with short-term wealth accumulation. The unique solution depends on tolerable infection incidence and social network structure. We then use unique data on nursing home networks in the US to calibrate the model and quantify state-level preference for prioritizing health over wealth. We also empirically validate simulation results derived from comparative statics analyses. Our findings suggest that policies that tolerate more virus spread (laissez-faire) increase state GDP growth and COVID-19 deaths in nursing homes. The detrimental effects of laissez-faire policies are more potent for nursing homes that are more peripheral in networks, nursing homes in poorer counties, and nursing homes that operate on a for-profit basis. We also find that US states with Republican governors have a higher tolerable incidence level, but these policies tend to converge with a high death count.

Keywords: COVID-19; Health-vs-wealth prioritization; Lockdown; Networks; Nursing homes (search for similar items in EconPapers)
JEL-codes: D85 E61 H12 I18 J15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00148-022-00916-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jopoec:v:36:y:2023:i:2:d:10.1007_s00148-022-00916-y

Ordering information: This journal article can be ordered from
http://www.springer. ... tion/journal/148/PS2

DOI: 10.1007/s00148-022-00916-y

Access Statistics for this article

Journal of Population Economics is currently edited by K.F. Zimmermann

More articles in Journal of Population Economics from Springer, European Society for Population Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().