THE DISTRIBUTIONAL EFFECTS OF COVID‐19 AND OPTIMAL MITIGATION POLICIES

Sewon Hur

International Economic Review, 2023, vol. 64, issue 1, 261-294

Abstract: This article develops a quantitative heterogeneous agent–life cycle–epidemiological model that is used to study the aggregate and distributional consequences of COVID‐19 and mitigation policies. First, a stay‐at‐home subsidy is preferred to a lockdown because it reduces deaths by more and output by less. Second, Pareto‐improving policies can reduce deaths by nearly 45% without any reduction in output relative to no public mitigation. Finally, it is possible to simultaneously improve public health and economic outcomes, suggesting that debates regarding a trade‐off between economic and health objectives may be misguided.

Date: 2023
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https://doi.org/10.1111/iere.12601

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Working Paper: The Distributional Effects of COVID-19 and Optimal Mitigation Policies (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:iecrev:v:64:y:2023:i:1:p:261-294

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