Krueger, Dirk; Uhlig, Harald; Xie, Taojun - 2021 - This version: March 2021
In this paper, we argue that endogenous shifts in private consumption behavior across sectors of the economy can act as a potent mitigation mechanism during an epidemic or when the economy is re-opened after a temporary lockdown. We introduce a SIR epidemiological model into a neoclassical...