The paper A Rational-Choice Model of Covid-19 Transmission with Endogenous Quarantining and Two-sided Prevention written by Yu Xiumei, a young teacher at the Innovation Base of Income Distribution and Public Finance, and her co-authors has been accepted by the internationally renowned Journal of Mathematical Economics.
This article examines how income inequality affects the spread of pandemics, mainly in the context of a model where preventive measures are endogenous. During this pandemic, quarantine and protective measures were the most common preventive measures: On the one hand, residents may reduce social interaction by home-quarantining; on the other hand, those who are required to participate in outdoor activities may choose further protection by wearing masks and washing hands regularly. Residents' decisions on which preventive measures to take or not to take depend on their costs and benefits, and therefore differ between income levels. In further consideration of the presence of asymptomatic infected individuals in the pandemic, this paper endogenizes these two preventive measures and examines the impact of income inequality on the spread of the pandemic.
The findings suggest that the impact of income inequality on the spread of the epidemic is uncertain. Higher levels of income inequality increase the proportion of residents in social groups who take no protective measures. However, the number of individuals going out for socialising is likely to decline, as more individuals taking no protective measures would pose a greater threat.
Dr Yu Xiumei is a young faculty member recruited by IIDPF in 2019, who completed her undergraduate degree at Yuanpei College, Peking University, and her PhD degree at the Institute of National School of Development, Peking University. In 2017-2018, Dr Yu studied at Iowa State University as a visiting scholar, with a focus on health economics, environmental and resource economics, and energy economics. Dr Yu has participated in numerous projects commissioned by the National Development and Reform Commission, and her research achievements can be found in prestigious journals such as the Journal of Environmental Economics and Management and China Economic Quarterly.