Infection externalities and social welfare

Jiancai Pi and Ping Xu

Asia-Pacific Journal of Accounting & Economics, 2025, vol. 32, issue 4, 751-769

Abstract: This paper investigates the effects of infection externalities on social welfare through constructing several general equilibrium models. The main findings are as follows. When the government increases the degree of controlling infection externalities of the urban skilled sector and the rural sector, social welfare will rise. However, for the urban unskilled sector, the change of social welfare is determined by the elasticity of substitution between unskilled labor and infection rights in this sector.

Date: 2025
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DOI: 10.1080/16081625.2024.2396311

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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