TY - JOUR
T1 - Integrated epi-econ assessment of vaccination
AU - Boppart, Timo
AU - Harmenberg, Karl
AU - Krusell, Per
AU - Olsson, Jonna
N1 - Funding Information:
We thank our discussant, Marina Azzimonti, and conference participants at Fed St. Louis-JEDC-SCG-SNB-UniBern Conference for helpful comments. This project has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No. 851891).
Funding Information:
We thank our discussant, Marina Azzimonti, and conference participants at Fed St. Louis-JEDC-SCG-SNB-UniBern Conference for helpful comments. This project has received funding from the European Research Council (ERC) under the European Union's Horizon 2020 research and innovation programme (grant agreement No. 851891).
Publisher Copyright:
© 2022
PY - 2022/7
Y1 - 2022/7
N2 - Using an integrated epi-econ model, we compute the value of vaccines for Covid-19, both under a planner's solution and in competitive equilibrium. The specific model, developed in Boppart, Harmenberg, Hassler, Krusell, and Olsson (2020), factors in not just value-of-life aspects along with standard economic variables but also the value of leisure activities that rely on a social component. We find that the societal value of vaccination is large; we estimate that, translated into monetary terms, the value of vaccinating one young individual in the competitive equilibrium is $17,800. Externalities are large: less than half the societal value is internalized by individuals (assuming that they act purely in their self-interest). Finally, behavioral responses are important, with a substantial share of the value of vaccines being attributed to people enjoying more socially-oriented leisure when more people are vaccinated.
AB - Using an integrated epi-econ model, we compute the value of vaccines for Covid-19, both under a planner's solution and in competitive equilibrium. The specific model, developed in Boppart, Harmenberg, Hassler, Krusell, and Olsson (2020), factors in not just value-of-life aspects along with standard economic variables but also the value of leisure activities that rely on a social component. We find that the societal value of vaccination is large; we estimate that, translated into monetary terms, the value of vaccinating one young individual in the competitive equilibrium is $17,800. Externalities are large: less than half the societal value is internalized by individuals (assuming that they act purely in their self-interest). Finally, behavioral responses are important, with a substantial share of the value of vaccines being attributed to people enjoying more socially-oriented leisure when more people are vaccinated.
U2 - 10.1016/j.jedc.2022.104308
DO - 10.1016/j.jedc.2022.104308
M3 - Article
C2 - 35039700
VL - 140
JO - Journal of Economic Dynamics and Control
JF - Journal of Economic Dynamics and Control
SN - 0165-1889
M1 - 104308
ER -