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Chasing up and locking down the virus: Optimal pandemic interventions within a network

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  • Michael Freiberger
  • Dieter Grass
  • Michael Kuhn
  • Andrea Seidl
  • Stefan Wrzaczek

Abstract

During the COVID‐19 pandemic countries invested significant amounts of resources into its containment. In early stages of the pandemic most of the (nonpharmaceutical) interventions can be classified into two groups: (i) testing and identification of infected individuals, (ii) social distancing measures to reduce the transmission probabilities. Furthermore, both groups of measures may, in principle, be targeted at certain subgroups of a networked population. To study such a problem, we propose an extension of the SIR model with additional compartments for quarantine and different courses of the disease across several network nodes. We develop the structure of the optimal allocation and study a numerical example of three symmetric regions that are subject to an asymmetric progression of the disease (starting from an initial hotspot). Key findings include that (i) for our calibrations policies are chosen in a “flattening‐the‐curve,” avoiding hospital congestion; (ii) policies shift from containing spillovers from the hotspot initially to establishing a symmetric pattern of the disease; and (iii) testing that can be effectively targeted allows to reduce substantially the duration of the disease, hospital congestion and the total cost, both in terms of lives lost and economic costs.

Suggested Citation

  • Michael Freiberger & Dieter Grass & Michael Kuhn & Andrea Seidl & Stefan Wrzaczek, 2022. "Chasing up and locking down the virus: Optimal pandemic interventions within a network," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 1182-1217, October.
  • Handle: RePEc:bla:jpbect:v:24:y:2022:i:5:p:1182-1217
    DOI: 10.1111/jpet.12604
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    References listed on IDEAS

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    10. Jonathan Caulkins & Dieter Grass & Gustav Feichtinger & Richard Hartl & Peter M Kort & Alexia Prskawetz & Andrea Seidl & Stefan Wrzaczek, 2020. "How long should the COVID-19 lockdown continue?," PLOS ONE, Public Library of Science, vol. 15(12), pages 1-19, December.
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    Cited by:

    1. John Higgins & Tarun Sabarwal, 2021. "Control and Spread of Contagion in Networks," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 202201, University of Kansas, Department of Economics, revised Jan 2022.
    2. de Mello-Sampayo, F.;, 2024. "Uncertainty in Healthcare Policy Decisions: An Epidemiological Real Options Approach to COVID-19 Lockdown Exits," Health, Econometrics and Data Group (HEDG) Working Papers 24/01, HEDG, c/o Department of Economics, University of York.
    3. Caulkins, J.P. & Grass, D. & Feichtinger, G. & Hartl, R.F. & Kort, P.M. & Kuhn, M. & Prskawetz, A. & Sanchez-Romero, M. & Seidl, A. & Wrzaczek, S., 2023. "The hammer and the jab: Are COVID-19 lockdowns and vaccinations complements or substitutes?," European Journal of Operational Research, Elsevier, vol. 311(1), pages 233-250.
    4. Grass, D. & Wrzaczek, S. & Caulkins, J.P. & Feichtinger, G. & Hartl, R.F. & Kort, P.M. & Kuhn, M. & Prskawetz, A. & Sanchez-Romero, M. & Seidl, A., 2024. "Riding the waves from epidemic to endemic: Viral mutations, immunological change and policy responses," Theoretical Population Biology, Elsevier, vol. 156(C), pages 46-65.
    5. Rabah Amir & Raouf Boucekkine, 2022. "Introduction to the special issue on new insights into economic epidemiology: Theory and policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 861-872, October.

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