Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/269097 
Autor:innen: 
Erscheinungsjahr: 
2022
Schriftenreihe/Nr.: 
ECB Working Paper No. 2690
Verlag: 
European Central Bank (ECB), Frankfurt a. M.
Zusammenfassung: 
How does contagion risk affect the business cycle? We find that the presence of contagion risk significantly alters the transmission of standard macroeconomic shocks. Relative to the first-best equilibrium, the contagion externality significantly reduces the response of output to a technology shock. We also argue that the magnitude of the trade-off between health and the economy crucially depends on how the proba-bility of infection is specified. If the probability of infection only depends on agents' endogenous choices, a weaker trade-off emerges. In such a framework, and relative to the laissezfaire equilibrium, suboptimal policies such as zero COVID strategies, health insurance, or mandatory testing substantially attenuate recessions that are caused by epidemics. Therefore, policies primarily aimed at preserving public health do not necessarily come at the cost of deeper recessions.
Schlagwörter: 
Contagion Externality
Lockdown Policies
Risk Sharing
IncompleteMarkets
JEL: 
E1
H0
I1
Persistent Identifier der Erstveröffentlichung: 
ISBN: 
978-92-899-5274-3
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
1.23 MB





Publikationen in EconStor sind urheberrechtlich geschützt.