This paper investigates the importance of the age composition for pandemic policy design in a framework with age heterogeneity, individual choice, and incomplete information, emphasizing the value of testing and testing capacity buildup. Optimal social policy follows an asymmetric approach by locking down the young relatively more than the old, and testing substantially lowers economic costs and laxer lockdown. We use the framework to provide systematic insights into pandemics caused by different viruses.
Optimal Age-Based Policies for Pandemics: An Economic Analysis of Covid-19 and Beyond
joint with L.Brotherhood, C. Santos and M. Tertilt, accepted at Review of Economic Studies.
This paper investigates the importance of the age composition for pandemic policy design in a framework with age heterogeneity, individual choice, and incomplete information, emphasizing the value of testing and testing capacity buildup. Optimal social policy follows an asymmetric approach by locking down the young relatively more than the old, and testing substantially lowers economic costs and laxer lockdown. We use the framework to provide systematic insights into pandemics caused by different viruses.
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International Economic Review, 2011, 52(1), pp 85-104. With M. Galenianos and G. Virag. [technical appendix] In directed search with a finite population, minimum wages improve employment but reduce output and efficiency, and reverse for unemployment benefits. Go to paper
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Do the Long-term Unemployed Benefit from Automated Occupational Advice during Online Job Search?
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