eprintid: 34924
rev_number: 15
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/03/49/24
datestamp: 2020-05-11 10:31:45
lastmod: 2021-03-31 12:52:16
status_changed: 2020-06-03 12:45:52
type: monograph
metadata_visibility: show
creators_name: Assenza, Tiziana
creators_name: Collard, Fabrice
creators_name: Dupaigne, Martial
creators_name: Fève, Patrick
creators_name: Hellwig, Christian
creators_name: Kankanamge, Sumudu
creators_name: Werquin, Nicolas
creators_idrefppn: 241586526
creators_idrefppn: 050061496
creators_halaffid: 1002422
creators_halaffid: 1002422 ; 441569
title: The Hammer and the Dance: Equilibrium and Optimal Policy during a Pandemic Crisis
ispublished: pub
subjects: subjects_ECO
abstract: We develop a comprehensive framework for analyzing optimal economic policy during a pandemic crisis in a dynamic economic model that trades off pandemic-induced mortality costs against the adverse economic impact of policy interventions. We use the comparison between the planner problem and the dynamic decentralized equilibrium to highlight the margins of policy intervention and describe optimal policy actions. As our main conclusion, we provide a strong and novel economic justification for the current approach to dealing with the pandemic, which is different from the existing health policy rationales. This justification is based on a simple economic concept, the shadow price of infection risks, which succinctly captures the static and dynamic trade-offs and externalities between economic prosperity and mortality risk as the pandemic unfolds.
date: 2020-05
date_type: published
publisher: TSE Working Paper
official_url: https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2020/wp_tse_1099.pdf
faculty: tse
divisions: tse
language: en
has_fulltext: TRUE
view_date_year: 2020
full_text_status: public
monograph_type: working_paper
series: TSE Working Paper
volume: 20-1099
place_of_pub: Toulouse
pages: 85
institution: Université Toulouse 1 Capitole
department: Toulouse School of Economics
book_title: TSE Working Paper
oai_identifier: oai:tse-fr.eu:124248
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oai_lastmod: 2020-05-25T07:30:10Z
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hal_id: hal-03186935
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hal_version: 1
hal_url: https://hal.archives-ouvertes.fr/hal-03186935
citation:   Assenza, Tiziana <https://www.idref.fr/241586526>, Collard, Fabrice <https://www.idref.fr/050061496>, Dupaigne, Martial, Fève, Patrick, Hellwig, Christian, Kankanamge, Sumudu and Werquin, Nicolas  (2020) The Hammer and the Dance: Equilibrium and Optimal Policy during a Pandemic Crisis.  TSE Working Paper, n. 20-1099, Toulouse     
document_url: https://publications.ut-capitole.fr/id/eprint/34924/1/wp_tse_1099.pdf