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Fall 2022
ISSN 0890-913X
Volume 37, Number 3

Individuals and Externalities in Economic Epidemiology: A Tension and Synthesis

Byron B. Carson, Hampden-Sydney College
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TheJournalofPrivateEnterprise37(3),2022,1-24IndividualsandExternalitiesinEconomicEpidemiology:ATensionandSynthesisByronB.Carson*Hampden-SydneyCollegeAbstractBothstandardeconomicandpublicchoiceapproachestoepidemiologyignoretheroleindividualsplayindiseaseprevention.Whereasthestandardeconomicapproachrecognizesthatpeoplerespondtochangingprevalencerates,thestandardpublicchoiceapproachsuggeststheysuccumbtofreeridingandcollective-actionproblems.Buttheliteratureoncollectiveactionandtheprivateprovisionofpublicgoodssuggestspeoplecanresolvecollection-actionproblemsinresponsetochangingprevalencerates,especiallywhendoingsolowerstransactioncosts.Theinsightsofthatliteraturesuggestthatdecisionsrelatedtomigration,housing,andcommunityandrelatedmarketsthatinfluencethosedecisionsinfluencemosquitocontroland,potentially,malariaprevalencerates.JELCodes:D70;H41;I15Keywords:prevalenceelasticity;externalities;transactioncosts;malariaByimmunizingoneselfagainstaninfectiousdisease,oneconfersasmallbenefitononesfellows,byslightlyreducingtheprobabilityoftheirbecominginfected.Atthesametime,thebenefittooneselfisparticularlygreat.”RichardCornesandToddSandlerI.IntroductionEconomistshavegenerateddistinctiveinsightsonepidemiologyanddiseaseprevention,buttheroleindividualsplayindiseasepreventionandtheirdegreeofagencyremainundertheorized.Themoreindividualshaveagencyandthemoretheycanavoidinfectionbyalteringtheirincentives,theweakerthecaseforpublicresponses.Towhatextentdoindividualshaveenoughagencytoaltertheseincentives?*IthankDianaThomas,HarryDavid,EdwardStringham,andananonymousreviewerfortheirhelpfulcomments.IalsothankArtCarden,PeterLeeson,andWilliamShughartfortheirhelpfulcommentsonanearlierdraft.Allerrorsaremyown.
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