Health vs. Economy: Politically Optimal Pandemic Policy
27 Pages Posted: 6 Aug 2020 Last revised: 12 Oct 2020
Date Written: September 30, 2020
Pandemics have heterogeneous effects on the health and economic outcomes of members of the population. To stay in power, politician-policymakers have to consider the health vulnerability-economic vulnerability (HV-EV) profiles of their coalition. We show that the politically optimal pandemic policy (POPP) reveals the HV-EV profile of the smallest, rather than the largest, group in the coalition. The logic of political survival dictates that the preferences of the least loyal, most pivotal, members of the coalition determine policy.
Keywords: Pandemics, COVID-19, Political Economy, Selectorate Theory
JEL Classification: D7, H12
Suggested Citation: Suggested Citation