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Health vs. Economy: Politically Optimal Pandemic Policy

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  • Koyama, Mark
  • Desierto, Desiree

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 least loyal, most pivotal, members of the coalition determine policy.

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  • Koyama, Mark & Desierto, Desiree, 2020. "Health vs. Economy: Politically Optimal Pandemic Policy," CEPR Discussion Papers 15129, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15129
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    References listed on IDEAS

    as
    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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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic policy > Policy trade-offs

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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. 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.
    5. 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.
    6. , 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.
    7. Glenn L. Furton, 2023. "The pox of politics: Troesken’s tradeoff reexamined," Public Choice, Springer, vol. 195(1), pages 169-191, April.
    8. 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.

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