The Blossoming of Economic Epidemiology

Infectious diseases, ideas, new products, and other infectants spread in epidemic fashion through social contact. The COVID-19 pandemic, the proliferation of fake news, and the rise of antimicrobial resistance have thrust economic epidemiology into the forefront of public policy debate and reinvigorated the field. Focusing for concreteness on disease-causing pathogens, this review provides a taxonomy of economic-epidemic models, emphasizing both the biology/immunology of the disease and the economics of the social context. An economic epidemic is one whose diffusion through the agent population is generated by agents’ endogenous behavior. I highlight properties of the equilibrium epidemic trajectory and discuss ways in which public health authorities can change the game for the better by ( a) imposing restrictions on agent activity to reduce the harm done during a viral outbreak and ( b) enabling diagnostic-informed interventions to slow or even reverse the rise of antibiotic resistance. Expected final online publication date for the Annual Review of Economics, Volume 13 is August 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

Estimating Behavioral Response to the AIDS Epidemic

The elasticity of risky sexual behavior to changes in local HIV infection prevalence is estimated using a longitudinal survey of the sexual behavior and health of gay men in San Francisco during the 1980s. An average respondent decreases risky behavior by about 5% in response to a 10% increase in disease prevalence. The average response obscures substantial variation across respondents: High-risk people reduce risky behavior less than low-risk people as prevalence increases. This result is consistent with the predictions of theoretical economic epidemiology and has implications for epidemic dynamics.