Modelling the Spread of the Coronavirus: A View from Economics

Aust Econ Rev. 2021 Mar;54(1):36-56. doi: 10.1111/1467-8462.12407. Epub 2021 Jan 27.

Abstract

This article reviews the modelling of the spread in Australia of COVID-19 from the point of view of the discipline of Economics. After a brief overview of the epidemiological approach, we show that other modelling is needed for policy purposes and especially to provide a full understanding of the economic and social costs of disease control. We look at microeconomic aspects of infection, focusing on individual behaviour, the choices facing the individual and implications for policy. The use of a cost-benefit approach and macroeconomic aspects of the pandemic are examined together with the economic consequences of policy response.