Giorgio Fabbri, Salvatore Federico, Davide Fiaschi and Fausto Gozzi have published their article “Mobility decisions, economic dynamics and epidemic” in Economic Theory.
Abstract
We propose a model, which nests a susceptible-infected-recovered-deceased (SIRD) epidemic model into a dynamic macroeconomic equilibrium framework with agents’ mobility. The latter affect both their income and their probability of infecting and being infected. Strategic complementarities among individual mobility choices drive the evolution of aggregate economic activity, while infection externalities caused by individual mobility affect disease diffusion. The continuum of rational forward-looking agents coordinates on the Nash equilibrium of a discrete time, finite-state, infinite-horizon Mean Field Game. We prove the existence of an equilibrium and provide a recursive construction method for the search of an equilibrium(a), which also guides our numerical investigations. We calibrate the model by using Italian experience on COVID-19 epidemic and we discuss policy implications.
The Keynesian Working Group is happy to announce a call for papers to the YSI…
The 2024 Hukum Chandra Memorial Prize selection committee unanimously agreed to award Dr. Nicola Salvati,…
The Regional Science Association International (RSAI) chose the Paper "Quality of government and women's political…
Giulia Rossello and Arianna Martinelli have published their article "Breach of academic values and misconduct:…
This edited compilation invites authors involved in empirical research on business, human rights and/or the…
Research Topic: Human rights violations by companies are at the heart of the European Directive…