implies that people's decision to cut back on consumption and work reduces the severity of the epidemic, as measured by total … deaths. These decisions exacerbate the size of the recession caused by the epidemic. The competitive equilibrium is not …

We analyze the effects of an epidemic in three standard macroeconomic models. We find that the neoclassical model does … not rationalize the positive comovement of consumption and investment observed in recessions associated with an epidemic …

with quarantines, testing dramatically reduces the economic costs of the epidemic. This reduction is particularly dramatic …

-19 epidemic as a natural experiment. Our analysis is based on a unique administrative data set with anonymized monthly …