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Vaccination Externalities

Author

Listed:
  • Boulier Bryan L.

    (The George Washington University)

  • Datta Tejwant S.

    (Albert Einstein Medical Center)

  • Goldfarb Robert S

    (George Washington University)

Abstract

Vaccination provides indirect benefits to the unvaccinated. Despite its important policy implications, there is little analytical or empirical work to quantify this externality, nor is it incorporated in a number of cost-benefit studies of vaccine programs. We use a standard epidemiological model to analyze how the magnitude of this externality varies with the number of vaccinations, vaccine efficacy, and disease infectiousness. We also provide empirical estimates using parameters for influenza and mumps epidemics. The pattern of the externality is complex and striking, unlike that suggested in standard treatments. The size of the externality is not necessarily monotonic in the number vaccinated, vaccine efficacy, nor disease infectiousness. Moreover, its magnitude can be remarkably large. In particular, the marginal externality of a vaccination can be greater than one case of illness prevented among the nonvaccinated, so its omission from policy analyses implies serious biases.

Suggested Citation

  • Boulier Bryan L. & Datta Tejwant S. & Goldfarb Robert S, 2007. "Vaccination Externalities," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-27, May.
    • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:23
    DOI: 10.2202/1935-1682.1487
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    References listed on IDEAS

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    1. Joel Smith, "undated". "Technical Working Paper: Creation of the September 2009 Baseline of the 2005 MATH SIPP+ Microsimulation Model and Database," Mathematica Policy Research Reports c2dd86c53a2b4f979e41ac610, Mathematica Policy Research.
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