Scholarlink

<p>I develop a simple model of precautionary behavior in the context of avoiding an infectious disease. I show that in an infinite horizon model, the degree of caution is always nonmonotone in the discount factor; in extensions with finite number of periods or stochastic termination, the degree of caution is nonmonotone with sufficient number of periods or sufficiently low termination probability. I extend the model to allow interaction between agents using the SIR approach. I find that again, precautionary behavior is not monotone in the discount factor. With high discount factors, individual precautionary behaviors are strategic complements.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Discounting and precautionary behavior with an application to economic epidemiology

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年2月19日

查看全文
  • Latchezar Popov

摘要

I develop a simple model of precautionary behavior in the context of avoiding an infectious disease. I show that in an infinite horizon model, the degree of caution is always nonmonotone in the discount factor; in extensions with finite number of periods or stochastic termination, the degree of caution is nonmonotone with sufficient number of periods or sufficiently low termination probability. I extend the model to allow interaction between agents using the SIR approach. I find that again, precautionary behavior is not monotone in the discount factor. With high discount factors, individual precautionary behaviors are strategic complements.