Inframarginal externalities: COVID-19, vaccines, and universal mandates.

Area of Science:

• Health Economics
• Epidemiology
• Public Policy

Background:

• COVID-19 vaccine mandates are globally debated.
• Neoclassical economics posits mandates are needed to address free-riding in vaccination.
• Free-riding occurs when private vaccination benefits are less than social benefits.

Purpose of the Study:

• To critically evaluate the economic justification for universal COVID-19 vaccine mandates based on free-riding.
• To analyze the extent to which COVID-19 vaccine benefits are internalized by individuals.
• To explore alternative mechanisms for increasing vaccination rates.

Main Methods:

• Economic analysis of externalities and public goods theory.
• Review of COVID-19 vaccine efficacy and transmission dynamics.
• Discussion of behavioral economics and institutional arrangements.

Main Results:

• Most COVID-19 vaccine benefits, such as protection from severe disease, are internalized by the vaccinated individual.
• Positive externalities from COVID-19 vaccination may be minimal or localized, primarily affecting close contacts.
• The free-rider argument for universal mandates is less compelling for COVID-19 compared to other infectious diseases.

Conclusions:

• Universal COVID-19 vaccine mandates require justification beyond the traditional free-rider model.
• Local or private institutional arrangements may be more effective in boosting vaccination rates.
• Further economic and policy research is needed to inform optimal public health strategies for infectious diseases.