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Optimal Vaccine Policies: Spillovers and Incentives
2021
Federal Reserve Bank of Richmond Working Papers
We offer a novel theoretical framework to study optimal vaccination policies. The key features of the model are that agents: 1) differ both in their potential exposure (x) to others and vulnerability (y) to severe illness, 2) exert negative externalities through interaction, and 3) can take voluntary preventative measures, for instance self-isolation. Our main result is a complete characterization of the second-best policy. Three striking features emerge. First, it is non-monotone -people with
doi:10.21144/wp21-06
fatcat:ibv4eyqgf5cbnbrltczlgqnzdi