TY  - BOOK
AU  - Eichenbaum,Martin S.
AU  - Rebelo,Sergio
AU  - Trabandt,Mathias
ED  - National Bureau of Economic Research.
TI  - The Macroeconomics of Epidemics
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - March 2020; Hardcopy version available to institutional subscribers
N2  - We extend the canonical epidemiology model to study the interaction between economic decisions and epidemics. Our model implies that people cut back on consumption and work to reduce the chances of being infected. These decisions reduce the severity of the epidemic but exacerbate the size of the associated recession. The competitive equilibrium is not socially optimal because infected people do not fully internalize the effect of their economic decisions on the spread of the virus. In our benchmark model, the best simple containment policy increases the severity of the recession but saves roughly half a million lives in the United States
UR  - https://www.nber.org/papers/w26882
UR  - http://dx.doi.org/10.3386/w26882
ER  -