Pandemics, economic freedom, and institutional trade-offs

Area of Science:

• Public Health
• Health Economics
• Epidemiology

Background:

• Institutions involve trade-offs in public goods provision affecting public health.
• Economic freedom influences disease patterns, potentially reducing poverty-related diseases relative to diseases of commerce.

Purpose of the Study:

• To investigate the impact of economic freedom on disease patterns, specifically focusing on smallpox and typhoid fever.
• To assess the implications of economic freedom for managing pandemics like COVID-19.

Main Methods:

• Historical analysis of smallpox and typhoid fever data from the late 19th and early 20th centuries.
• Examination of the relationship between economic freedom and mortality rates for specific diseases.

Main Results:

• Economic freedom was found to reduce typhoid mortality across various settings before smallpox eradication.
• Economic freedom showed no significant effect on smallpox mortality during the study period.
• Long-term wealth generated by economic freedom may reduce vulnerability to diseases of commerce via improved management of comorbidities.

Conclusions:

• Economic freedom presents a trade-off between public goods and disease management but is generally beneficial for public health.
• While short-term pandemic response may involve some conflict with economic freedom, its long-term benefits are crucial for public health and pandemic preparedness.