An economic model of the Covid-19 pandemic with young and old agents: Behavior, testing and policies

joint with L.Brotherhood, C. Santos and M. Tertilt

This paper explores policies in epidemiological model of Covid-19 where individual’s of different age (and associated risk) make private social distancing decisions. Social distancing especially by the old is substantial, and the optimal social planner restricts the young more to provide some slack for the old. Costs of this is much lower when there is also testing.

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