Glover, Andrew;
Heathcote, Jonathan;
Krueger, Dirk;
Ríos-Rull, José-Víctor;
(2023)
Health versus wealth: On the distributional effects of controlling a pandemic.
Journal of Monetary Economics
, 140
pp. 34-59.
10.1016/j.jmoneco.2023.07.003.
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Abstract
To slow the COVID-19 virus, many countries shut down parts of the economy. Older individuals have the most to gain from slowing virus diffusion. Younger workers in shuttered sectors have most to lose. We build a model in which economic activity and disease progression are jointly determined. Individuals differ by age, sector and health status. Disease transmission occurs at work, at home, through consumption, and in hospitals. Optimal economic shutdowns in 2020 are milder when taxes are distortionary, and when the government does not have access to debt. A harder, shorter shutdown is preferred when vaccines become available in early 2021.
| Type: | Article |
|---|---|
| Title: | Health versus wealth: On the distributional effects of controlling a pandemic |
| DOI: | 10.1016/j.jmoneco.2023.07.003 |
| Publisher version: | https://doi.org/10.1016/j.jmoneco.2023.07.003 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10213869 |
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