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Health vs. Economy: Politically Optimal Pandemic Policy

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  • Desierto, Desiree
  • Koyama, Mark

Abstract

Pandemics have heterogeneous effects on the health and economic outcomes of members of the population. To stay in power, politician-policymakers have to consider the health vulnerability–economic vulnerability (HV–EV) profiles of their coalition. We show that the politically optimal pandemic policy (POPP) reveals the HV–EV profile of the smallest, rather than the largest, group in the coalition. The logic of political survival dictates that the preferences of the most pivotal members of the coalition determine policy.

Suggested Citation

  • Desierto, Desiree & Koyama, Mark, 2020. "Health vs. Economy: Politically Optimal Pandemic Policy," Journal of Political Institutions and Political Economy, now publishers, vol. 1(4), pages 645-669, November.
    • Handle: RePEc:now:jnlpip:113.00000026
    DOI: 10.1561/112.00000026
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    1. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
    2. Jonung, Lars, 2020. "Sweden's Constitution Decides Its Covid-19 Exceptionalism," Working Papers 2020:11, Lund University, Department of Economics.
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    Cited by:

    1. Arielle Kaim & Tuvia Gering & Amiram Moshaiov & Bruria Adini, 2021. "Deciphering the COVID-19 Health Economic Dilemma (HED): A Scoping Review," IJERPH, MDPI, vol. 18(18), pages 1-13, September.
    2. Emilio Depetris-Chauvin & Felipe González, 2023. "The Political Consequences of Vaccines: Quasi-experimental Evidence from Eligibility Rules," Documentos de Trabajo 572, Instituto de Economia. Pontificia Universidad Católica de Chile..
    3. Pulejo, Massimo & Querubín, Pablo, 2021. "Electoral concerns reduce restrictive measures during the COVID-19 pandemic," Journal of Public Economics, Elsevier, vol. 198(C).
    4. , 2023. "The Political Consequences of Vaccines: Quasi-experimental Evidence from Eligibility Rules," Working Papers 953, Queen Mary University of London, School of Economics and Finance.
    5. Sajid Ullah & Farman Ullah Khan & Vanina Adoriana Trifan & Adina Eleonora Spinu & Grigorie Sanda, 2022. "Modeling Key Strategies for Reducing Socio-Economic and Health Crisis: Perspective from COVID-19 Pandemic," IJERPH, MDPI, vol. 19(21), pages 1-21, October.
    6. Mark Koyama, 2023. "Epidemic disease and the state: Is there a tradeoff between public health and liberty?," Public Choice, Springer, vol. 195(1), pages 145-167, April.
    7. Vincent Geloso & Kelly Hyde & Ilia Murtazashvili, 2022. "Pandemics, economic freedom, and institutional trade-offs," European Journal of Law and Economics, Springer, vol. 54(1), pages 37-61, August.
    8. Glenn L. Furton, 2023. "The pox of politics: Troesken’s tradeoff reexamined," Public Choice, Springer, vol. 195(1), pages 169-191, April.

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