DP6653 Escaping Epidemics Through Migration? Quarantine Measures Under Asymmetric Information About Infection Risk.

Author(s): Alice Mesnard, Paul Seabright
Publication Date: January 2008
Keyword(s): epidemic diseases, migration, public policy, quarantine
JEL(s): I18, O15, O19, R23
Programme Areas: Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=6653

This paper explores implications of the fact that individuals know more than the authorities about their risk of infection and can take migration decisions before their health status is publicly observable. In a 2-period model we study under which conditions the presence of quarantine measures may lead to inefficient outcomes as individuals' interest in migration to escape centres of disease may become stronger and generate negative externalities imposed on other uninfected individuals.