{"title":"Testing alone is insufficient.","authors":"Rahul Deb, Mallesh Pai, Akhil Vohra, Rakesh Vohra","doi":"10.1007/s10058-022-00295-6","DOIUrl":null,"url":null,"abstract":"<p><p>The fear of contracting a serious illness caused by a contagious disease limits economic activity even after reopening. Widespread testing alone will not alleviate this problem. We argue that targeted testing in concert with targeted transfers is essential. We propose a model with these features to determine where agents should be tested and how they should be incentivized. Agents with a low wage, a high risk of infection, and who bear a large cost of falling ill should be tested at work. When testing is very costly, agents with high wages and low expected costs associated with falling ill should be tested at home.</p>","PeriodicalId":44537,"journal":{"name":"Review of Economic Design","volume":"26 1","pages":"1-21"},"PeriodicalIF":0.3000,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8886876/pdf/","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Economic Design","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1007/s10058-022-00295-6","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2022/3/1 0:00:00","PubModel":"Epub","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The fear of contracting a serious illness caused by a contagious disease limits economic activity even after reopening. Widespread testing alone will not alleviate this problem. We argue that targeted testing in concert with targeted transfers is essential. We propose a model with these features to determine where agents should be tested and how they should be incentivized. Agents with a low wage, a high risk of infection, and who bear a large cost of falling ill should be tested at work. When testing is very costly, agents with high wages and low expected costs associated with falling ill should be tested at home.
期刊介绍:
Review of Economic Design comprises the creative art and science of inventing, analyzing and testing economic as well as social and political institutions and mechanisms aimed at achieving individual objectives and social goals. In this age of Economic Design, the accumulated traditions and wealth of knowledge in normative and positive economics and the strategic analysis of game theory are applied with novel ideas in the creative tasks of designing and assembling diverse legal-economic instruments. These include constitutions and other assignments of rights, mechanisms for allocation or regulation, tax and incentive schemes, contract forms, voting and other choice aggregation procedures, markets, auctions, organizational forms, such as partnerships, together with supporting membership and other property rights, and information systems. These designs, the methods of analysis used in their scrutiny, as well as the mathematical techniques and empirical knowledge they employ, along with comparative assessments of the performance of known economic systems and implemented designs, all of these form natural components of the subject matter of Economic Design.
Officially cited as: Rev Econ Design