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The Dynamics of Economic Epidemiology Equilibria

Aadland, David and Finnoff, David and Huang, Kevin X.D. (2011): The Dynamics of Economic Epidemiology Equilibria.

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Abstract

In this paper, we investigate the nature of rational expectations equilibria for economic epidemiological models. Unlike mathematical epidemiological models, economic epidemiological models can produce regions of indeterminacy or instability around the endemic steady state. We consider SI, SIS, SIR and SIRS versions of economic compartmental models and show how well-intentioned public policy may contribute to disease instability and uncertainty.

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