SIR economic epidemiological models with disease induced mortality

This paper studies an optimal growth model where there is infectious disease with SIR dynamics which can lead to mortality. Health expenditures (alternatively intensity of lockdowns) be made reduce infectivity the disease. We study implications two different ways related mortality – early and late in infection on equilibrium health economic outcomes. In former, increasing reduces infections by decreasing fraction infectives population, while latter increases. characterize steady states outcomes depend way modeled. With mortality, leads higher per capita output consumption these decrease. establish sufficiency conditions provide first results models without — a class are non-convex have endogenous discounting so that no existing applicable.