The incidence of COVID-19 has systematically decreased households’ use of cash as means of payment as well as the average size and frequency of cash withdrawals. We argue that the structure of Baumol-Tobin type inventory theoretical models and their extensions can be used to separate the...

We study the optimal lockdown policy for a planner who wants to control the fatalities of a pandemic while minimizing the output costs of the lockdown. We use the SIR epidemiology model and a linear economy to formalize the planner's dynamic control problem. The optimal policy depends on the...

We study the optimal lockdown policy for a planner who wants to control the fatalities of a pandemic while minimizing the output costs of the lockdown. We use the SIR epidemiology model and a linear economy to formalize the planners dynamic control problem. The optimal policy depends on the...