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Boppart T, Harmenberg K, Krusell P, Olsson J
J Econ Dyn Control - (-) 104308 [2022-01-13; online 2022-01-13]
Using an integrated epi-econ model, we compute the value of vaccines for Covid-19, both under a planner's solution and in competitive equilibrium. The specific model, developed in Boppart, Harmenberg, Hassler, Krusell, and Olsson (2021), factors in not just value-of-life aspects along with standard economic variables but also the value of leisure activities that rely on a social component. We find that the societal value of vaccination is large; we estimate that, translated into monetary terms, the value of vaccinating one young individual in the competitive equilibrium is $17,800. Externalities are large: less than half the societal value is internalized by individuals (assuming that they act purely in their self-interest). Finally, behavioral responses are important, with a substantial share of the value of vaccines being attributed to people enjoying more socially-oriented leisure when more people are vaccinated.
PubMed 35039700
DOI 10.1016/j.jedc.2022.104308
Crossref 10.1016/j.jedc.2022.104308
pii: S0165-1889(22)00013-6
pmc: PMC8755642