Economics Seminar Series
Philipp Kircher, Cornell University
An economic model of the Covid-19 pandemic with young and old agents: Behavior, testing and policies
Dr. Philipp Kircher
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. An optimal lockdown then confines the young more. The strictness and economic costs of the optimal lockdown depend on whether or not individuals can telework. Testing and quarantines save lives, even if conducted just on the young. When some testing is available, the optimal lockdown is much lighter and GDP rises even compared with a no-policy benchmark.
Link: https://philippkircher.com/wp-content/uploads/Coronavirus10.pdf
DATE: Friday, March 11th, 2022
TIME: 3:30-5:00pm
LOCATION: ZOOM
Meeting ID: 987 7371 8035
Passcode: 146660