Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260300 
Year of Publication: 
2020
Series/Report no.: 
Working Paper No. 2020:8
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
Abstract: 
This paper considers a simple model where a social planner can influence the spread-intensity of an infection wave, and, consequently, also the economic activity and population health, through a single parameter. Population health is assumed to only be negatively affected when the number of simultaneously infected exceeds health care capacity. The main finding is that if (i) the planner attaches a positive weight on economic activity and (ii) it is more harmful for the economy to be locked down for longer than shorter time periods, then the optimal policy is to (weakly) exceed health care capacity at some time.
Subjects: 
Covid-19 pandemic
SI-model
economic activity
health
optimal policy
JEL: 
E23
E27
E60
E65
Document Type: 
Working Paper

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