The economic benefits and costs of COVID-19 mitigation measures in Mexico
DOI:
https://doi.org/10.24201/ee.v36i1.415Keywords:
COVID-19, Mexico, cost-benefit, epidemicAbstract
In this paper I calculate the daily flows of COVID-19 cases under the scenario of social distance and restricted economic activity implemented during the first months after the beginning of the epidemic, and under a counterfactual uncontrolled scenario with no mitigation measures. I estimate that social distance policies reduce the number of COVID-19 cases by 33%, saving over 292,000 lives. The benefits of these measures are monetized as 526 billion USD. Under a plausible economic recovery trajectory, I estimate that the net cost of mitigation in terms of output gap is equal to 35% of Mexico’s 2019 GDP.
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References
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