Older, unhealthy individuals seem especially vulnerable to the coronavirus. Using an overlappinggenerations model, we show that a targeted lockdown policy based on preexisting health conditions would have reduced the economic severity of the pandemic by 22.5% without compromising health...

This paper exploits a well accepted inefficiency that arises out of Pay-As-You-Go (PAYG) pensions itself to phase it out in a Pareto way. The positive externality of having children in a PAYG pension system is carefully utilized to phase the pensions out. In a model with endogenous fertility the...

We incorporate age-specific socio-economic interactions in a SIR macroeconomic model to study the role of demographic factors for the COVID-19 epidemic evolution, its macroeconomic outcomes and possible containment measures. Our framework captures the endogenous response of rational individuals...

This paper analyzes the optimal level of public debt when taxes are used not only for funding public expenditures but also for correcting externalities from climate change. Taking into account externalities may imply that the optimal policy deviates from tax smoothing. Provided accumulated...

Using endogenous, age-dependent measures of the value of statistical lives (VSL), this paper examines the demographic implications of recessions driven by disease contagions. Depending on the age-distribution mortality profile of the disease, long-run welfare losses resulting from the recession...

In presence of imperfections in education loan market, the standard policy response of intervening solely on education front, funded through taxes and transfers, necessarily hurts the initial working population. The literature suggests compensating them via pay-as-you-go pensions as a possible...