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Philipp KIRCHER (Cornell University – University of Edimburgh) – “An economic model of the Covid-19 pandemic with young and old agents: Behavior, testing and policies “
November 10, 3:00 pm - 4:00 pm
The Microeconometrics Seminar: Every Tuesday
Time: 03:00 pm – 4:00 pm
Date: 10th of November 2020
Philipp KIRCHER (Cornell University – University of Edimburgh) – “An economic model of the Covid-19 pandemic with young and old agents: Behavior, testing and policies”
Abstract: This paper investigates the importance of the age composition in the Covid-19 pandemic. We augment a standard SIR epidemiological model with individual choices on work and non-work social distancing. Infected individuals are initially uncertain unless they are tested. We find that older individuals socially distance themselves substantially in equilibrium. Confining the old even more reduces their welfare. Confining the young extends the duration of the epidemic, with negative consequences on the old if the epidemic cannot be controlled after confinement. Testing and quarantines save lives, even if conducted just on the young, as does separation of activities by age. Combining policies can increase the welfare of both the young and the old.
Joint with Luiz Brotherhood, Cezar Santos et Michele Tertilt.
Benoît SCHMUTZ (Laboratoire de Microéconométrie-CREST)
Anthony STRITTMATTER (Laboratoire de Microéconométrie-CREST)