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An imperfect test for a virus can Be worse than No test at all

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  • Mark Whitmeyer

Abstract

This note studies the effect of the availability of a test for a virus on the public health of a population. It is shown by example that the existence of a freely available and moderately informative test for a virus may lower society's welfare in comparison to the case where no test exists or access to the test is restricted. In this setting, any test provided to any subset of agents who would find it optimal not to isolate absent the test improves welfare.

Suggested Citation

  • Mark Whitmeyer, 2021. "An imperfect test for a virus can Be worse than No test at all," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1347-1360, June.
    • Handle: RePEc:wly:hlthec:v:30:y:2021:i:6:p:1347-1360
    DOI: 10.1002/hec.4254
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    References listed on IDEAS

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    1. Maximilian Kasy & Alexander Teytelboym, 2020. "Adaptive targeted infectious disease testing," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 36(Supplemen), pages 77-93.
    2. Ely, Jeffrey & Galeotti, Andrea & Jann, Ole & Steiner, Jakub, 2021. "Optimal test allocation," Journal of Economic Theory, Elsevier, vol. 193(C).
    3. Talamàs, Eduard & Vohra, Rakesh, 2020. "Free and perfectly safe but only partially effective vaccines can harm everyone," Games and Economic Behavior, Elsevier, vol. 122(C), pages 277-289.
    4. Michael Kremer, 1996. "Integrating Behavioral Choice into Epidemiological Models of AIDS," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 549-573.
    5. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
    6. Michael Kremer, 1996. "Integrating Behavioral Choice into Epidemiological Models of the AIDS Epidemic," NBER Working Papers 5428, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Hedlund, Jonas & Hernandez-Chanto, Allan & Oyarzun, Carlos, 2024. "Contagion management through information disclosure," Journal of Economic Theory, Elsevier, vol. 218(C).

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