Carlos Garriga, Rody Manuelli and Siddhartha Sanghi study a dynamic macro model to capture the trade-off between policies that simultaneously decrease output and the rate of infection transmission. Findings suggest that, in many cases, optimal policies require sharp initial decreases in employment followed by a partial liberalization that occurs before the peak of the epidemic. The study also discusses the impact of the arrival of a vaccine and its changing value as the epidemic progresses.
Studying the macroeconomic impact of lockdown measures, Neha Bairoliya and Ayse Imrohoroglu find that mitigation efforts targeted towards certain age and health groups result in significantly smaller economic disruptions compared to an indiscriminate lockdown.
Kalypso Nicolaïdis explains why and how in France-Culture.