Pandemic, inequality and public health: A quantitative analysis

Abstract

This paper examines the role of the public health system and inequality during a health crisis (pandemic). We study a two-jurisdiction economy (rich, poor) with two household types (entrepreneurs, workers) and a shock affecting health goods demand and labor productivity. The presence of a public health system helps reduce health consumption inequality and lessens the impact of health shocks on non-health consumption inequality, especially when the pandemic leads to productivity loss. However, it also contributes to increased total consumption inequality, highlighting trade-offs in addressing inequality during a pandemic. Public health provision mitigates pandemic-driven inequality and dampens its rise.