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How should unemployment benefits vary in response to the economic crisis induced by the COVID-19 pandemic? We answer this question by computing the optimal unemployment insurance response to the COVID-induced recession.We compare the optimal policy to the provisions under the CARES Act-which...
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contacts drastically in the beginning, to almost eradicate the epidemic, and keeps them at around a third of pre … epidemic in the laissez faire, though at a prevalence of infections much higher than optimal. Impure altruistic behaviour …
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COVID-19 constitutes a health crisis which has rapidly turned into a social and economic crisis. This paper briefl y explores some of the issues raised by the combination of a massive supply-side shock with a massive demand-side shock, and the interaction of these with the exponential dynamics...
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