Academic seminar with Daniel Herrera (Online)

Séminaire académique La Chaire Recherche

,   -
Université Paris-Dauphine


Daniel Herrera (Université Paris-Dauphine)

"How should we value the risk of infection from COVID-19? An application to the United States, France and Colombia », current research work and paper" 

This paper focuses on the monetary valuation of reductions in the risk of contracting COVID-19. I develop a stylized health valuation framework and apply it to the COVID-19 paradigm. The model suggests that willingness to pay to reduce the risk of contracting COVID-19 depends on the conditional probability of dying from COVID-19, preferences to reduce own mortality risk and the preferences to reduce risk to others. Given the large economic impact of social distancing, indi- viduals’ willingness to pay may be pushed downward. Accounting for other-regarding preferences may compensate for such decreases, and help rationalize social lockdown strategies in countries where health-related benefits are not large enough to justify the social costs of a lockdown.

Please note that academic seminars will be held online.

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