TITLE:
How Could We Prevent Spread of the Coronavirus without Deteriorating Economy?
AUTHORS:
Yasunori Fujita
KEYWORDS:
Coronavirus, Dynamic Optimization, Hamiltonian, Euler Equation, Contact Rate
JOURNAL NAME:
Modern Economy,
Vol.11 No.7,
July
15,
2020
ABSTRACT: In the present paper, we attempt to find a way of
preventing the spread of the new coronavirus without deteriorating the economy,
by constructing an intertemporal model based on the dynamic optimization
theory. More precisely, following the procedures used in dynamic optimization,
we derive the optimal intertemporal path of the contact rate among the workers
in an economy where the new coronavirus is spreading widely. It is revealed
that under the optimal regulation, the workers should contact with other
workers less and less at first, and then contact with other workers more and
more until the contact rate reaches certain point.