Integrated Epi-econ Assessment of Vaccination

Timo Boppart, Karl Harmenberg, Per Krusell*, Jonna Olsson

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
Original languageEnglish
Article number104308
JournalJournal of Economic Dynamics and Control
Number of pages12
ISSN0165-1889
DOIs
Publication statusPublished - 13 Jan 2022
Externally publishedYes

Bibliographical note

Epub ahead of print. Published online: 13 January 2022.

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