Infectious disease and preventive behavior in an overlapping generations model

Momota, Akira; Tabata, Kenji; Futagami, Koichi

doi:10.1016/j.jedc.2004.09.007

Cited by 25 publications

(26 citation statements)

References 23 publications

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“…which is identical to (12). For a dynamically-efficient economy (  1), the first term is unambiguously positive, while the second term is ambiguously signed.…”

Section: Appendixmentioning

confidence: 85%

“…As is clear from (12), a small increase in public health investment raises welfare at the margin if the economy is dynamically efficient. More loosely, introducing public intervention in health may be justified if the economy is dynamically efficient and mortality risk is exogenous.…”

Section: A Rationale For Public Investment In Health?mentioning

confidence: 99%

“…In this case, from the societal standpoint, the aforediscussed Philipson-Becker effect implies that private individuals under invest in their own health; they face a too low survival risk, and hence, too high an interest burden on their borrowing. From (12), it is clear that in this case, the intergenerational transfer effect (the part arising from  exceeding unity) and the Philipson-Becker effect work in tandem to generate a role for public health. In fact, when the young are net borrowers, even if the intergenerational-transfer effect is shut down for some reason, the Philipson-Becker effect stays active and independently justifies public involvement in health.…”

Section: Endogenous Mortality Riskmentioning

confidence: 99%

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A dynamic‐efficiency rationale for public investment in the health of the young

Andersen

Bhattacharya

2014

Canadian J of Economics

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In this paper, we assume away standard distributional and static-efficiency arguments for public health, and instead, seek a dynamic efficiency rationale. We study a lifecycle model wherein young agents make health investments to reduce mortality risk. We identify a welfare rationale for public health under dynamic efficiency and exogenous mortality even when private and public investments are perfect substitutes. If health investment reduces mortality risk but individuals do not internalize its effect on the life-annuity interest rate, the Philipson-Becker effect emerges; when the young are net borrowers, it works together with dynamic efficiency to support a role for public health. Abstract.In this paper, we assume away standard distributional and static-efficiency arguments for public health, and instead, seek a dynamic efficiency rationale. We study a lifecycle model wherein young agents make health investments to reduce mortality risk. We identify a welfare rationale for public health under dynamic efficiency and exogenous mortality even when private and public investments are perfect substitutes. If health investment reduces mortality risk but individuals do not internalize its effect on the life-annuity interest rate, the "Philipson-Becker effect" emerges; when the young are net borrowers, it works together with dynamic efficiency to support a role for public health.

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“…which is identical to (12). For a dynamically-efficient economy (  1), the first term is unambiguously positive, while the second term is ambiguously signed.…”

Section: Appendixmentioning

confidence: 85%

Section: A Rationale For Public Investment In Health?mentioning

confidence: 99%

Section: Endogenous Mortality Riskmentioning

confidence: 99%

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A dynamic‐efficiency rationale for public investment in the health of the young

Andersen

Bhattacharya

2014

Canadian J of Economics

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“…15 Denoting parent i's earned income (other than child-labor income) by d i W t , the budget constraint for the household is c i t þ n i enable us to examine other important issues for developing economies, such as infectious disease. On this issue, see Lagerlö f (2003) and Momota et al (2005). Unfortunately, we do not have sufficient space to consider these issues.…”

Section: Householdsmentioning

confidence: 99%

A population-macroeconomic growth model for currently developing countries

Momota

2009

Journal of Economic Dynamics and Control

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“…However, such damage will depend on the degree of preparedness of the people or government. If a country has a series of such experiences, then being better prepared can result in lower mortality in the next outbreak of the disease (Momota et al, 2005). For example, Taiwan was most seriously affected by the 2003 SARS disease (Liu et al, 2005).…”

Section: Introductionmentioning

confidence: 99%

Options using a collective lottery to ration vaccines during an influenza pandemic

et al. 2010

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For many countries, the best way to counter an influenza pandemic is to provide citizens with a pandemic vaccine. However, since the global supply of the vaccines is far smaller than the quantity demanded, how to allocate the limited vaccines can be a very challenging task for them. In this study, we introduce a collective lottery mechanism that allocates vaccines as fairly as the traditional lottery, while also offering more options for family members or those who are close so that they can choose the joint probability of successes that can maximize their welfare. This mechanism thus gives rise to a Pareto improvement over the traditional lottery. Our empirical study uses the US and the UK as examples in sequential collective lotteries that are simulated to prove that such an improvement while maintaining fairness, in fact, exists

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Infectious disease and preventive behavior in an overlapping generations model

Cited by 25 publications

References 23 publications

A dynamic‐efficiency rationale for public investment in the health of the young

A dynamic‐efficiency rationale for public investment in the health of the young

A population-macroeconomic growth model for currently developing countries

Options using a collective lottery to ration vaccines during an influenza pandemic

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