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Searching for a "Golden Rule" of Economic Regulation of an Infectious Disease

Author

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  • Eirik S. Amundsen
Abstract
This paper investigates whether a “Golden Rule” of regulation of an infectious disease may be elicited that balances the economic control and disease costs when the arrival of a future vaccine or a cure is uncertain. Formulating an optimal control problem applied to standard compartment models of infection, an optimality rule is derived. This rule is more complex than other similar Golden Rules related to optimal economic growth or extraction of natural resources. The paper contains interpretation of the derived rule and numeric examples of how the rule functions under the compartment models (i.e., the SI, the SIS, and the SIR models).

Suggested Citation

  • Eirik S. Amundsen, 2022. "Searching for a "Golden Rule" of Economic Regulation of an Infectious Disease," CESifo Working Paper Series 9607, CESifo.
    • Handle: RePEc:ces:ceswps:_9607
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    References listed on IDEAS

    as
    1. Fernando Alvarez & David Argente, 2020. "A Simple Planning Problem for COVID-19 Lockdown," Working Papers 2020-34, Becker Friedman Institute for Research In Economics.
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    6. Andrew Atkeson, 2020. "What Will Be the Economic Impact of COVID-19 in the US? Rough Estimates of Disease Scenarios," NBER Working Papers 26867, National Bureau of Economic Research, Inc.
    7. Amundsen, E.S. & Bjorndal, T., 1999. "Optimal Exploitation of a Biomass Confronted with the Threat of Collapse," Norway; Department of Economics, University of Bergen 193, Department of Economics, University of Bergen.
    8. Eirik S. Amundsen & Trond Bjørndal, 1999. "Optimal Exploitation of a Biomass Confronted with the Threat of Collapse," Land Economics, University of Wisconsin Press, vol. 75(2), pages 185-202.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    infectious disease; economic regulation; Golden Rule; compartment models;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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