Integrated epi-econ assessment

Timo Boppart, Karl Harmenberg, John Hassler, Per Krusell and Jonna Olsson

No 297, Edinburgh School of Economics Discussion Paper Series from Edinburgh School of Economics, University of Edinburgh

Abstract: We formulate an economic time use model and add to it an epidemiological SIR block. In the event of a pandemic, households shift their leisure time from activities with a high degree of social interaction to activities with less, and also choose to work more from home. Our model highlights the different actions taken by young individuals, who are less severely affected by the disease, and by old individuals, who are more vulnerable. We calibrate our model to time use data from ATUS, employment data, epidemiological data, and estimates of the value of a statistical life. There are qualitative as well as quantitative differences between the competitive equilibrium and social planner allocation and, moreover, these depend critically on when a cure arrives. Due to the role played by social activities in people's welfare, simple indicators such as deaths and GDP are insufficient for judging outcomes in our economy.

Pages: 81 pages
Date: 2020-12
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Citations: View citations in EconPapers (13)

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http://www.econ.ed.ac.uk/papers/id297_esedps.pdf

Related works:
Working Paper: Integrated epi-econ assessment (2020)
Working Paper: Integrated Epi-Econ Assessment (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:edn:esedps:297

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