Abstract We extend the canonical epidemiology model to study interaction between economic decisions and epidemics. Our implies that people cut back on consumption work reduce chances of being infected. These severity epidemic but exacerbate size associated recession. The competitive equilibrium is not socially optimal because infected do fully internalize effect their spread virus. In our bench...

Traditional deterministic modeling of epidemics is usually based on a linear system differential equations in which compartment transitions are proportional to their population, implicitly assuming an exponential process for leaving as happens radioactive decay. Nonetheless, this assumption quite unrealistic since it permits class transition such the passage from illness recovery that does not ...