Travel restrictions are often imposed to limit the spread of infectious diseases. As uniform restrictions can be inefficient and incur unnecessarily high costs, this paper examines the optimal design of restrictions that target specific travel routes. We propose a model with trade-offs between...

Empirical evidence suggests that both leisure time and medical care are important for maintaining health. We develop a general equilibrium macroeconomic model in which taxation is a key determinant of the composition of these two inputs in the endogenous accumulation of health capital. In our...