Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241216 
Year of Publication: 
2020
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2020-50
Publisher: 
Bank of Canada, Ottawa
Abstract: 
We study the interaction between epidemics and economic decisions in a model where (1) agents allocate their time to market and home production and social and home leisure, (2) these activities differ in their degree of contagiousness, (3) some infected individuals are indistinguishable from susceptible individuals, and (4) agents are not necessarily rational. For baseline parameter values for the COVID-19 pandemic, we find that agents partially selfisolate by allocating more time to home activities and that the effective reproduction number of the disease stabilises at one. Detection and isolation of infected individuals severely mitigate the recession caused by the pandemic.
Subjects: 
Coronavirus disease (COVID-19)
Economic models
JEL: 
E1
H0
I1
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
897.67 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.