On optimal lockdown policies while facing socioeconomic costs

Abstract The paper analyzes the optimal lockdown policy using SQAIRD model over a network with three population groups (young, adult, and old). We show that different policies may be justified by socioeconomic structures (objective cost functions are either convex or concave). also is always better than laissez-faire policy, targeted specific to each group outperforms uniform policy. In our benchmark example, we consider case of Italy. Our simulations that: (a) because it limits costs generated pandemic in an uncontrolled situation; (b) group-specific lockout more effective extent differ. latter less expensive (as optimally minimizes direct, indirect, vaccination costs), equally controlling pandemic. One finding particular interest rate should higher for young elderly adults. This motivated fact younger individuals likely spread virus question asymptomatically.