Transmissible diseases, vaccination, and inequality

Carmen Camacho () and Chrysovalantis Vasilakis
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Carmen Camacho: PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Chrysovalantis Vasilakis: Bangor Business School - forTANK, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics

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Abstract: We construct a Susceptible–Infected–Vaccinated Economic two‐sector growth model to explore the dynamics of inequality in an economy with distinct groups of workers exposed to a transmissible disease. Our analysis reveals a spectrum of outcomes in the long term, ranging from a disease‐free economic environment to a scenario where only the most susceptible group suffers from the disease. Long‐term outcomes are influenced by the reproduction rates both of the overall economy and those of the two groups of workers. If one group remains infected over time, the other will surely follow, leading to a perpetual disease burden for both. Additionally, because long‐term equilibria may not be unique, there is a possibility of long‐term uncertainty, posing additional challenges for policymakers. Notably, our calibrated model suggests that if the vaccination rate exceeds 24%, the relationship between disease exposure and inequality in capital assets becomes nonmonotonic.

Date: 2024-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04805658v1
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Published in Journal of Public Economic Theory, 2024, 26 (6), ⟨10.1111/jpet.70002⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-04805658

DOI: 10.1111/jpet.70002

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