The role of vaccination in a model of asset pricing during a pandemic.
PLoS One
; 17(4): e0266511, 2022.
Article
in English
| MEDLINE | ID: covidwho-2021658
ABSTRACT
This paper examines the effect of pandemic vaccination on asset prices in a simple asset pricing model à la Lucas 1978. In this model, asset prices depend on susceptible individuals' saving motives to insure against a reduction in labour income due to getting they get the virus. Hence distributing vaccine reduces precautionary saving motives and asset prices. This implies that reducing the income gap between susceptible and infected individuals, such as by cash handouts, eases the negative effect of vaccine supply on asset prices.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Main subject:
Vaccination
/
Pandemics
Topics:
Vaccines
Limits:
Humans
Language:
English
Journal:
PLoS One
Journal subject:
Science
/
Medicine
Year:
2022
Document Type:
Article
Affiliation country:
Journal.pone.0266511
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