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The Collective Trust Game: An Online Group Adaptation of the Trust Game Based on the HoneyComb Paradigm
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Optimal lockdown in altruistic economies.

Stefano Bosi1, Carmen Camacho2, David Desmarchelier3

  • 1Université Paris-Saclay, Univ Evry, EPEE, 91025, Evry-Courcouronnes, France.

Journal of Mathematical Economics
|April 26, 2021
PubMed
Summary
This summary is machine-generated.

This study models optimal lockdown policies for infectious diseases. A positive lockdown is recommended when altruism is high, with intensity increasing alongside altruism.

Keywords:
Optimal lockdownRamsey modelSIS model

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Area of Science:

  • Epidemiology
  • Public Health
  • Economics

Background:

  • The COVID-19 pandemic highlighted the need to understand infectious disease impacts on economies.
  • Altruistic households' concern for infected individuals influences economic behavior.
  • Susceptible-Infected-Susceptible (SIS) disease dynamics model recovery without immunity.

Purpose of the Study:

  • To determine optimal lockdown policies in a dynamic general equilibrium model.
  • To analyze the relationship between household altruism and lockdown intensity.
  • To provide policy recommendations for managing infectious disease outbreaks in market economies.

Main Methods:

  • Developed a dynamic general equilibrium model with altruistic households.
  • Incorporated SIS epidemiological dynamics to represent disease spread.
  • Assumed constant lockdown policies to ensure analytical tractability and avoid non-convexity.
  • Employed numerical simulations to illustrate analytical findings.

Main Results:

  • Zero lockdown is optimal when individuals lack concern for infection rates.
  • Positive lockdown policies become efficient above a critical level of altruism.
  • Lockdown intensity scales directly with the degree of household altruism.
  • Optimal lockdown levels were found to not exceed 60% in simulations.
  • Disease eradication is not consistently the most efficient outcome.

Conclusions:

  • Altruism is a key determinant of optimal lockdown policy effectiveness.
  • Policy recommendations should consider the level of public altruism.
  • Constant lockdown policies offer analytical solutions but may not capture dynamic nuances.
  • The study provides a framework for analyzing economic and epidemiological trade-offs.