Velasco, Andrés; Chang, Roberto; Martinez, Humberto - National Bureau of Economic Research - 2021
The advent of a pandemic is an exogenous shock, but the dynamics of contagion are very much endogenous --and depend on … alleviating economic losses but also via incentives that affect the trajectory of the pandemic itself. We develop this idea in a … dynamic equilibrium model of an economy subject to a pandemic. Just as in conventional SIR models, infection rates depend on …