Mortality containment vs. Economics Opening: Optimal policies in a SEIARD model

Riding the waves from epidemic to endemic: Viral mutations, immunological change and policy responses

Nonpharmaceutical interventions (NPI) are an important tool for countering pandemics such as COVID-19. Some are cheap; others disrupt economic, educational, and social activity. The latter force governments to balance the health benefits of reduced infection and death against broader lockdown-induced societal costs. A literature has developed modeling how to optimally adjust lockdown intensity as an epidemic evolves. This paper extends that literature by augmenting the classic SIR model with additional states and flows capturing decay over time in vaccine-conferred immunity, the possibility that mutations create variants that erode immunity, and that protection against infection erodes faster than protecting against severe illness. As in past models, we find that small changes in parameter values can tip the optimal response between very different solutions, but the extensions considered here create new types of solutions. In some instances, it can be optimal to incur perpetual epidemic waves even if the uncontrolled infection prevalence would settle down to a stable intermediate level.

Stochastic transmission in epidemiological models

Recent empirical evidence suggests that the transmission coefficient in susceptible-exposed-infected-removed-like (SEIR-like) models evolves with time, presenting random patterns, and some stylized facts, such as mean-reversion and jumps. To address such observations we propose the use of jump-diffusion stochastic processes to parameterize the transmission coefficient in an SEIR-like model that accounts for death and time-dependent parameters. We provide a detailed theoretical analysis of the proposed model proving the existence and uniqueness of solutions as well as studying its asymptotic behavior. We also compare the proposed model with some variations possibly including jumps. The forecast performance of the considered models, using reported COVID-19 infections from New York City, is then tested in different scenarios. Despite the simplicity of the epidemiological model, by considering stochastic transmission, the forecasted scenarios were fairly accurate.

The hammer and the jab: Are COVID-19 lockdowns and vaccinations complements or substitutes?

The COVID-19 pandemic has devastated lives and economies around the world. Initially a primary response was locking down parts of the economy to reduce social interactions and, hence, the virus' spread. After vaccines have been developed and produced in sufficient quantity, they can largely replace broad lock downs. This paper explores how lockdown policies should be varied during the year or so gap between when a vaccine is approved and when all who wish have been vaccinated. Are vaccines and lockdowns substitutes during that crucial time, in the sense that lockdowns should be reduced as vaccination rates rise? Or might they be complementary with the prospect of imminent vaccination increasing the value of stricter lockdowns, since hospitalization and death averted then may be permanently prevented, not just delayed? We investigate this question with a simple dynamic optimization model that captures both epidemiological and economic considerations. In this model, increasing the rate of vaccine deployment may increase or reduce the optimal total lockdown intensity and duration, depending on the values of other model parameters. That vaccines and lockdowns can act as either substitutes or complements even in a relatively simple model casts doubt on whether in more complicated models or the real world one should expect them to always be just one or the other. Within our model, for parameter values reflecting conditions in developed countries, the typical finding is to ease lockdown intensity gradually after substantial shares of the population have been vaccinated, but other strategies can be optimal for other parameter values. Reserving vaccines for those who have not yet been infected barely outperforms simpler strategies that ignore prior infection status. For certain parameter combinations, there are instances in which two quite different policies can perform equally well, and sometimes very small increases in vaccine capacity can tip the optimal solution to one that involves much longer and more intense lockdowns.

Balancing economic and epidemiological interventions in the early stages of pathogen emergence

The global pandemic of COVID-19 has underlined the need for more coordinated responses to emergent pathogens. These responses need to balance epidemic control in ways that concomitantly minimize hospitalizations and economic damages. We develop a hybrid economic-epidemiological modeling framework that allows us to examine the interaction between economic and health impacts over the first period of pathogen emergence when lockdown, testing, and isolation are the only means of containing the epidemic. This operational mathematical setting allows us to determine the optimal policy interventions under a variety of scenarios that might prevail in the first period of a large-scale epidemic outbreak. Combining testing with isolation emerges as a more effective policy than lockdowns, substantially reducing deaths and the number of infected hosts, at lower economic cost. If a lockdown is put in place early in the course of the epidemic, it always dominates the "laissez-faire" policy of doing nothing.

A simple planning problem for COVID-19 lockdown: a dynamic programming approach

A large number of recent studies consider a compartmental SIR model to study optimal control policies aimed at containing the diffusion of COVID-19 while minimizing the economic costs of preventive measures. Such problems are non-convex and standard results need not to hold. We use a Dynamic Programming approach and prove some continuity properties of the value function of the associated optimization problem. We study the corresponding Hamilton-Jacobi-Bellman equation and show that the value function solves it in the viscosity sense. Finally, we discuss some optimality conditions. Our paper represents a first contribution towards a complete analysis of non-convex dynamic optimization problems, within a Dynamic Programming approach.

Modeling social, economic, and health perspectives for optimal pandemic policy decision-making

While different control strategies in the early stages of the COVID-19 pandemic have helped decrease the number of infections, these strategies have had an adverse economic impact on businesses. Therefore, optimal timing and scale of closure and reopening strategies are required to prevent both different waves of the pandemic and the negative economic impact of control strategies. This paper proposes a novel multi-objective mixed-integer linear programming (MOMILP) formulation, which results in the optimal timing of closure and reopening of states and industries in each state to mitigate the economic and epidemiological impact of a pandemic. The three objectives being pursued include: (i) the epidemiological impact, (ii) the economic impact on the local businesses, and (iii) the economic impact on the trades between industries. The proposed model is implemented on a dataset that includes 11 states, the District of Columbia, and 19 industries in the US. The solved by augmented ε-constraint approach is used to solve the multi-objective model, and a final strategy is selected from the set of Pareto-optimal solutions based on the least cubic distance of the solution from the optimal value of each objective. The Pareto-optimal solutions suggest that for any control decision (state and industry closure or reopening), the economic impact and the epidemiological impact change in the opposite direction, and it is more effective to close most states while keeping the majority of industries open during the planning horizon.

Path integral control of a stochastic multi-risk SIR pandemic model

In this paper a Feynman-type path integral control approach is used for a recursive formulation of a health objective function subject to a fatigue dynamics, a forward-looking stochastic multi-risk susceptible-infective-recovered (SIR) model with risk-group's Bayesian opinion dynamics toward vaccination against COVID-19. My main interest lies in solving a minimization of a policy-maker's social cost which depends on some deterministic weight. I obtain an optimal lock-down intensity from a Wick-rotated Schrödinger-type equation which is analogous to a Hamiltonian-Jacobi-Bellman (HJB) equation. My formulation is based on path integral control and dynamic programming tools facilitates the analysis and permits the application of algorithm to obtain numerical solution for pandemic control model.

Modelling optimal lockdowns with waning immunity

This paper studies continuing optimal lockdowns (can also be interpreted as quarantines or self-isolation) in the long run if a disease (Covid-19) is endemic and immunity can fail, that is, the disease has SIRS dynamics. We model how disease related mortality affects the optimal choices in a dynamic general equilibrium neoclassical growth framework. An extended welfare function that incorporates loss from mortality is used. In a disease endemic steady state, without this welfare loss even if there is continuing mortality, it is not optimal to impose even a partial lockdown. We characterize how the optimal restriction and equilibrium outcomes vary with the effectiveness of the lockdown, the productivity of working from home, the rate of mortality from the disease, and failure of immunity. We provide the sufficiency conditions for economic models with SIRS dynamics with disease related mortality-a class of models which are non-convex and have endogenous discounting so that no existing results are applicable.

Analysis of optimal lockdown in integral economic-epidemic model

We analyze the optimal lockdown in an economic-epidemic model with realistic infectiveness distribution. The model is described by Volterra integral equations and accurately depicts the COVID-19 infectivity pattern from clinical data. A maximum principle is derived, and a qualitative dynamic analysis of the optimal lockdown problem is provided over finite and infinite horizons. We analytically prove and economically justify the possibility of an endemic scenario when the infection rate begins to climb after the lockdown ends.

Should the COVID-19 lockdown be relaxed or intensified in case a vaccine becomes available?

Immediately after the start of the COVID-19 pandemic in Early 2020, most affected countries reacted with strict lockdown to limit the spread of the virus. Since that time, the measures were adapted on a short time basis according to certain numbers (i.e., number of infected, utilization of intensive care units). Implementing a long-term optimal strategy was not possible since a forecast when R&D will succeed in developing an effective vaccination was not available. Our paper closes this gap by assuming a stochastic arrival rate of the COVID-19 vaccine with the corresponding change in the optimal policy regarding the accompanying optimal lockdown measures. The first finding is that the lockdown should be intensified after the vaccine approval if the pace of the vaccination campaign is rather slow. Secondly, the anticipation of the vaccination arrival also leads to a stricter lockdown in the period without vaccination. For both findings, an intuitive explanation is offered.

THE DISTRIBUTIONAL EFFECTS OF COVID-19 AND OPTIMAL MITIGATION POLICIES

This paper develops a quantitative heterogeneous agent-life cycle-epidemiological model that is used to study the aggregate and distributional consequences of COVID-19 and mitigation policies. First, a stay-at-home subsidy is preferred to a lockdown because it reduces deaths by more and output by less. Second, Pareto-improving policies can reduce deaths by nearly 45 percent without any reduction in output relative to no public mitigation. Finally, it is possible to simultaneously improve public health and economic outcomes, suggesting that debates regarding a tradeoff between economic and health objectives may be misguided. This article is protected by copyright. All rights reserved.

Chasing up and locking down the virus: Optimal pandemic interventions within a network

During the COVID-19 pandemic countries invested significant amounts of resources into its containment. In early stages of the pandemic most of the (nonpharmaceutical) interventions can be classified into two groups: (i) testing and identification of infected individuals, (ii) social distancing measures to reduce the transmission probabilities. Furthermore, both groups of measures may, in principle, be targeted at certain subgroups of a networked population. To study such a problem, we propose an extension of the SIR model with additional compartments for quarantine and different courses of the disease across several network nodes. We develop the structure of the optimal allocation and study a numerical example of three symmetric regions that are subject to an asymmetric progression of the disease (starting from an initial hotspot). Key findings include that (i) for our calibrations policies are chosen in a "flattening-the-curve," avoiding hospital congestion; (ii) policies shift from containing spillovers from the hotspot initially to establishing a symmetric pattern of the disease; and (iii) testing that can be effectively targeted allows to reduce substantially the duration of the disease, hospital congestion and the total cost, both in terms of lives lost and economic costs.

Sensitivity theorems of a model of multiple imperfect vaccines for COVID-19

In response to the ongoing pandemic of COVID-19, several companies across the world have proposed a wide variety of vaccines of different mechanisms of action. As a consequence, a new scenario of multiple imperfect vaccines against the SARS-CoV-2 arose. Mathematical modeling needs to consider this complex situation with different vaccines, some of them with two required doses. Using compartmental models we can simplify, simulate and most importantly, answer questions related to the development of the outbreak and the vaccination campaign. We present a model that addresses the current situation of COVID-19 and vaccination. Two important questions were considered in this paper: are more vaccines useful to reduce the spread of the coronavirus? How can we know if the vaccination campaign is sufficient? Two sensitivity criteria are helpful to answer these questions. The first criterion is the Multiple Vaccination Theorem, which indicates whether a vaccine is giving a positive or negative impact on the reproduction number. The second result (Insufficiency Theorem) provides a condition to answer the second question. Finally, we fitted the parameters with data and discussed the empirical results of six countries: Israel, Germany, the Czech Republic, Portugal, Italy, and Lithuania.

The Economic Effects of COVID-19 Containment Measures

This paper examines the economic effects of COVID-19 containment measures using daily global data on containment measures, infections, and economic activity indicators, such as Nitrogen Dioxide (\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage{amsfonts} \usepackage{amssymb} \usepackage{amsbsy} \usepackage{mathrsfs} \usepackage{upgreek} \setlength{\oddsidemargin}{-69pt} \begin{document}$${\mathrm{NO}}_{2})$$\end{document}NO2) emissions, international and domestic flights, energy consumption, maritime trade, and mobility indices. Results suggest that containment measures had a significant impact on economic activity—equivalent to about a 10 percent loss in industrial production over 30 days following their implementation. Easing of containment measures results in an increase in economic activity, but the effect is lower (in absolute value) to that of tightening. Fiscal measures used to mitigate the crisis were effective in partly offsetting these costs. We also find that school closures and cancellation of public events are among the most effective measures in curbing infections and are associated with low economic costs. Other highly effective measures like workplace closures and international travel restrictions are among the costliest in economic terms.

Optimal federal transfers during uncoordinated response to a pandemic

An outbreak of a deadly disease pushes policymakers to depress economic activity due to externalities associated with individual behavior. Sometimes, these decisions are left to local authorities (e.g., states). This creates another externality, as the outbreak doesn't respect states' boundaries. A strategic Pigouvian subsidy that rewards states which depress their economies more than the average corrects that externality by creating a race-to-the-bottom type of response. In a symmetric equilibrium nobody receives a subsidy, but the allocation is efficient. If states are concerned about unequal burden of the lockdown costs, but cannot easily issue new debt to finance transfer payments, then lock-downs will be insufficient in some areas and excessive in others. When that's the case, federal stimulus checks can limit the extent of local outbreaks.

The spreading of Covid-19 in Mexico: A diffusional approach

In this work, we analyze the spreading of Covid-19 in Mexico using the spatial SEIRD epidemiologic model. We use the information of the 32 regions (States) that conform the country, such as population density, verified infected cases, and deaths in each State. We extend the SEIRD compartmental epidemiologic with diffusion mechanisms in the exposed and susceptible populations. We use the Fickian law with the diffusion coefficient proportional to the population density to encompass the diffusion effects. The numerical results suggest that the epidemiologic model demands time-dependent parameters to incorporate non-monotonous behavior in the actual data in the global dynamic. The diffusional model proposed in this work has great potential in predicting the virus spreading on different scales, i.e., local, national, and between countries, since the complete reduction in people mobility is impossible.

The optimal lockdown intensity for COVID-19

One of the principal ways nations are responding to the COVID-19 pandemic is by locking down portions of their economies to reduce infectious spread. This is expensive in terms of lost jobs, lost economic productivity, and lost freedoms. So it is of interest to ask: What is the optimal intensity with which to lockdown, and how should that intensity vary dynamically over the course of an epidemic? This paper explores such questions with an optimal control model that recognizes the particular risks when infection rates surge beyond the healthcare system's capacity to deliver appropriate care. The analysis shows that four broad strategies emerge, ranging from brief lockdowns that only "smooth the curve" to sustained lockdowns that prevent infections from spiking beyond the healthcare system's capacity. Within this model, it can be optimal to have two separate periods of locking down, so returning to a lockdown after initial restrictions have been lifted is not necessarily a sign of failure. Relatively small changes in judgments about how to balance health and economic harms can alter dramatically which strategy prevails. Indeed, there are constellations of parameters for which two or even three of these distinct strategies can all perform equally well for the same set of initial conditions; these correspond to so-called triple Skiba points. The performance of trajectories can be highly nonlinear in the state variables, such that for various times t , the optimal unemployment rate could be low, medium, or high, but not anywhere in between. These complex dynamics emerge naturally from modeling the COVID-19 epidemic and suggest a degree of humility in policy debates. Even people who share a common understanding of the problem's economics and epidemiology can prefer dramatically different policies. Conversely, favoring very different policies is not evident that there are fundamental disagreements.

Taming the spread of an epidemic by lockdown policies

We study the problem of a policymaker who aims at taming the spread of an epidemic while minimizing its associated social costs. The main feature of our model lies in the fact that the disease's transmission rate is a diffusive stochastic process whose trend can be adjusted via costly confinement policies. We provide a complete theoretical analysis, as well as numerical experiments illustrating the structure of the optimal lockdown policy. In all our experiments the latter is characterized by three distinct periods: the epidemic is first let to freely evolve, then vigorously tamed, and finally a less stringent containment should be adopted. Moreover, the optimal containment policy is such that the product "reproduction number × percentage of susceptible" is kept after a certain date strictly below the critical level of one, although the reproduction number is let to oscillate above one in the last more relaxed phase of lockdown. Finally, an increase in the fluctuations of the transmission rate is shown to give rise to an earlier beginning of the optimal lockdown policy, which is also diluted over a longer period of time.