This paper builds a government policy choice model in a general equilibrium setting in which households' health status responds to a stricter policy on the pandemic. By assuming an exogenous policy decision date, the model implies the government should maintain the current policy until the...

This paper builds a government policy choice model in a general equilibrium setting in which households' health status responds to a stricter policy on the pandemic. By assuming an exogenous policy decision date, the model implies the government should maintain the current policy until the...

We develop a general equilibrium model incorporating households with consumption habits and a government to analyze how policy uncertainty affects household consumption and stock prices. The model implies that the government should avoid policy changes if the policy uncertainty is high or an...