Economic Activity and Public Health Policy: A Note

• Authors: Raül Santaeulàlia-Llopis.
• BSE Working Paper: 1284 | September 21
• Keywords: Policy evaluation , public health , COVID-19 , economic choice , epidemiology
• JEL codes: E24, J21, J23, J24
• Policy evaluation
• public health
• COVID-19
• economic choice
• epidemiology

Using a standard labor choice model I show how economic activity shapes and -at the same time-is shaped by an epidemic. Then, I use this framework to validate with a montecarlo analysis the stage-based identification strategy of policy effects recently proposed in Aleman et al. (2020a). I then describe their assessment of the effectiveness of the Spanish stay-home policy against Covid-19.