Let's consider the economic impact of the pandemic on the economy. Assume that the pandemic evolves...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Let's consider the economic impact of the pandemic on the economy. Assume that the pandemic evolves according to the basic SIR model: S i R and = = = -BS(t)I(t) BS(t)I(t)-I(t) yI (t) with initial conditions S(0), I(0), and R(0), satisfying S(0)+1(0) +R(0) = 1 S+I+R=0= S(t) + I(t) +R(t) = 1 for all t > 0. Assume that some fraction 0< < 1 of infected people are too sick to work. This implies that during the pandemic the effective labour force E(t) is given by (1) (2) (3) E(t) = (1 - I (t))L, where we assume the labour (I) is fixed and does change over time. Finally, assume that production is Cobb-Douglas such that Y(t) = K (AE(t))¹-a, where capital is fixed (K) and technology (A) are fixed. (a) Find an expression for the growth rate of output in terms of the growth rate of infections 91 = 1/1(t). Is output growth positively or negatively related to infection growth? (b) Let K = A = L = 1, a = 0.33, p = 0.5, S(0) = 1, and the solution path for infections be I(t) = 1- S(t) + In(S(t)/S(0)). Create a MATLAB graph that plots output against the percentage of the population that is susceptible. Compare Ro = 2.5 to Ro = 1.4, where the latter is the average Ro of seasonal influenza. Assuming o is the same for Covid and influenza, is Covid's impact on the economy similar to influenza in this model? (Tip: set the axes to go no higher than 1, e.g. axis ([0 1 0.5 1]) so that only values of I(t) >0 are shown.) Ro Let's consider the economic impact of the pandemic on the economy. Assume that the pandemic evolves according to the basic SIR model: S i R and = = = -BS(t)I(t) BS(t)I(t)-I(t) yI (t) with initial conditions S(0), I(0), and R(0), satisfying S(0)+1(0) +R(0) = 1 S+I+R=0= S(t) + I(t) +R(t) = 1 for all t > 0. Assume that some fraction 0< < 1 of infected people are too sick to work. This implies that during the pandemic the effective labour force E(t) is given by (1) (2) (3) E(t) = (1 - I (t))L, where we assume the labour (I) is fixed and does change over time. Finally, assume that production is Cobb-Douglas such that Y(t) = K (AE(t))¹-a, where capital is fixed (K) and technology (A) are fixed. (a) Find an expression for the growth rate of output in terms of the growth rate of infections 91 = 1/1(t). Is output growth positively or negatively related to infection growth? (b) Let K = A = L = 1, a = 0.33, p = 0.5, S(0) = 1, and the solution path for infections be I(t) = 1- S(t) + In(S(t)/S(0)). Create a MATLAB graph that plots output against the percentage of the population that is susceptible. Compare Ro = 2.5 to Ro = 1.4, where the latter is the average Ro of seasonal influenza. Assuming o is the same for Covid and influenza, is Covid's impact on the economy similar to influenza in this model? (Tip: set the axes to go no higher than 1, e.g. axis ([0 1 0.5 1]) so that only values of I(t) >0 are shown.) Ro
Expert Answer:
Answer rating: 100% (QA)
To solve this problem we need to follow these steps a Find an expression for the growth rate of output in terms of the growth rate of infections From ... View the full answer
Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Posted Date:
Students also viewed these accounting questions
-
An economist worrying about the economic impact of environmental regulations would model that impact with a a. Decrease in aggregate supply. b. Increase in aggregate supply. c. Decrease in aggregate...
-
Explain the economic impact of the US civil war in detail.
-
Define the economic impact of biofuel. What kinds are already used in the US? What is the future application in the US?
-
(a) Write the chemical reactions whose equilibrium constants are Kb and Ka for imidazole and imidazole hydrochloride, respectively.
-
Crenshaw uses a job order costing system to account for projects. It applies Manufacturing overhead to jobs on the basis of direct labor hours and pays its direct labor workers $25 per hour. The...
-
8 of tion A new project will allow you to sell a new product at $57 each. Variable costs are $29 each and fixed costs would run $69,000 per year. If there is an initial investment required of $75,000...
-
Presented below are summary financial data from the Bristol-Myers Squibb 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following ratios: return on equity, return on...
-
In Problem 5, if P(s1) = 0.25, P(s2) = 0.50, and P(s3) = 0.25, find a recommended decision for each of the three decision makers. (For the same decision problem, different utilities can lead to...
-
K Calculate the contribution margin for each department and income before taxes, based on the following: (Click the icon to view the data) Complete the following income statement to calculate the...
-
Find point estimates for the mean and standard deviation of the Months Customer data in the Credit Risk Data file. Draw five random samples of sizes 50 and 250 from the data using the Sampling tool....
-
Identify the claim for each of your stock issues: Pet stores sell animals from private breeders which can include animals from puppymills and harmful unethical breeders. Blame Structural Blame:...
-
On May 1 of Year 1, Setup Inc. sold an issue of 5%, $1,800 bonds dated January 1 of Year 1 to yield 5%. The bonds pay interest every June 30 and December 31 and mature December 31 of Year 5. a....
-
How do lifestyle factors, including diet, exercise, and sleep hygiene, modulate the body's stress response system and contribute to overall resilience against stress-related disorders?
-
Analyzing and InterpretingAnalyzing and Interpreting Disclosures on Equity Method Investments Cummins Inc. reports investments in affiliated companies, consisting mainly of investments in six...
-
www 6. Linus Ullmark of the Boston Bruins had the best save percentage of a goalie in the 2022-2023 season. We take this to mean, loosely, that Ullmark has a 93.8% chance of making a save when a puck...
-
How do emerging technologies, such as online dispute resolution platforms and artificial intelligence-mediated negotiation tools, reshape the landscape of conflict resolution, and what ethical and...
-
XYZ Company has provided the following information for the preparation of one part of the budget of the year ended December 31, 2020. a) The Company will sell the under mentioned quantities in each...
-
Shreemaya Hotel in !adore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing...
-
With the production function Q = 2 min(K, L) and the cost function C = 2K + 3L, what combination of inputs minimizes costs for Q = 10? Show this solution graphically.
-
Suppose that in a particular market, the inverse demanded for hasenpfeffer is given by P = 100 - Q. The market is served by two Cournot competitors, Hansel and Gretel, whose quantities are denoted qH...
-
Suppose that Maureen believes that name-brand laundry detergent is twice as effective as generic laundry detergent but that the two goods are otherwise identical. Therefore, her utility function is...
-
Consider a Poisson regression model where y has density f ( y ) = e y / y ! ! , y i = 0 , 1 , 2 , , and we have independence over i . Because of coding error we only fully observe y when y ...
-
This question considers the consequences of misspecification in the Tobit model. The starting point is the model of Exercise 16.1. (a) Generate y with heteroskedasticity by letting u N [ 0 , 2 z ]...
-
Consider the multinomial version of the PCGF test given in (8.23) with \(p_{j}\) replaced by \(\widehat{p}_{j}=N^{-1} \sum_{i} F_{j}\left(\mathbf{x}_{i}, \widehat{\boldsymbol{\theta}} ight)\). Show...
Study smarter with the SolutionInn App