The Zero COVID strategy is gaining ground, with countries like New Zealand standing out for their success in dealing with the epidemic. Here are some observations on why and how this strategy works. A thread. #EconTwitter #EpiTwitter #eradication #ZeroCovid
The main ideas are borrowed from previous work I've done in slightly different context, looking at how disease control with multiple policies should be designed. There I looked at treatment and prevention, but ideas similar.
inet.econ.cam.ac.uk/research-paper…
Suppose we want to control disease and have two broad policy instruments available, lockdowns and test-trace-isolate (TTI). Each policy is costly, so we need to understand how to use and combine them wisely at different phases of epidemic.
Because interventions are costly, we want to get as much bang for the buck when we use them. The thing is, the value of each intervention depends on how much infection there is in the population. So effectiveness of policies changes over time. Let's consider each in isolation.
The value of lockdowns *increases* as infections surge. This means that we want to keep people at home when things are getting out of hand. For low prevalence, the marginal benefit of lockdowns is lower than marginal cost, and other way around for high prevalence.
This is roughly what most governments do. They lock down for high infection numbers and relax when infections fall. Problem is: by using *only* lockdowns, we cannot generally hope to eradicate disease. See thread on why this is so here:
In turn, the value of test-trace-isolate *decreases* with prevalence. The marginal benefit of TTI is higher than marginal cost when disease prevalence is low but lower when infections soar.
Let's dwell on this last point. Note that the more effective TTI we do, the more we manage to suppress new infections. This helps decrease prevalence and hence make TTI *even more valuable* and prompting us to do more if it. There are dynamic complementarities.
Let's return to the Zero COVID strategy and the alternative that relies on only lockdowns. With lockdowns and no workable TTI, the best we can hope for is to follow the underlying dynamics of disease but to attenuate effects. This is worthwhile but we can do even better.
With strong lockdowns and effective TTI, we can get numbers down and *keep them down* at relatively modest cost. Once we've "invested" with costly lockdowns, we can reap the benefits and maintain low prevalence at relatively modest cost through TTI.
Note that we cannot rely on TTI when infection numbers are too high. Tracing infections is unwieldy and exorbitantly expensive when many people are infected. But it's doable when infection numbers are low, as we have seen in many countries that have done it successfully.
Not getting test-trace-isolate infrastructure working is a serious mistake, because it robs government of a key instrument in managing the epidemic. Without this tool, Zero COVID is completely unrealistic.
The UK government may have started to realise this, having introduced "surge testing" to stem the spread of the South African variant.
gov.uk/government/new…
But once the current lockdown brings infections down to manageable levels, the government should treat *any* COVID infection in the same way. Of course, this is only possible with a working TTI infrastructure and building this should now be the primary policy objective.
Caveat: the linked paper looks at "treatment", not TTI. In that work, treatment works by taking infected people out of population and thus reduces disease incidence. TTI works in similar fashion, by reducing transmission. Check paper out for details.
A few shout-outs to researchers who have made similar points for some time: @devisridhar @_Maia_King @sjwrenlewis @t0nyyates
The tradeoffs I described above are also at the core of a forthcoming paper by
@alvafer64 @dargente05
and Francesco Lippi. Check it out! aeaweb.org/articles?id=10…

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More from @toxvaerd1

22 Jan
Should we pay people for getting infected? Should we increase fines for rule breakers? Incentives are key for controlling epidemic & getting it wrong can backfire. So far, the government has shown poor judgment. A thread.
#EconTwitter #EpiTwitter #COVID19 theguardian.com/world/2021/jan…
People must be encouraged to do the right thing & protect themselves and others. This involves mix of stick and carrot, such as fines for rule breaking and income support for self-isolating. I lay out the case for such measures here: economicsobservatory.com/externalities-…
There are two types of subsidies; payments tied to behaviours and those tied to health outcomes. In simple terms, if we pay people to reduce exposure then they have stronger incentives to comply. Similarly, we can impose fines for endangering others.
Read 10 tweets
9 Jan
The health-wealth tradeoff of lockdowns is still hotly debated. Here are some thoughts that may help untangle the issues. 1/17 #EconTwitter #EpiTwitter
Figure courtesy of @luismbcabral
Let's start with concept of tradeoffs. With aggregate societal wealth and health on the axes, we can show all combinations that we can achieve though different policies. All points in purple region are feasible, those outside it are not. Which point should we choose? 2/17
Since society values both health and wealth, from any starting point, we want to move in North-East direction. When making a move, we say that there is a tradeoff if gaining more health necessarily means giving up some wealth. 3/17
Read 17 tweets
12 Nov 20
I've been trying for some time to find a killer metaphor for why it's worth taking a short-term economic hit to better control the epidemic and thereby improve both future health and increase future economic prosperity. 1/5
#EconTwitter #EpiTwitter
Most people immediately recognise static tradeoffs such as "more of one thing means less of another thing". That's why the infamous "lives versus the economy" has gained such traction in the public debate. 2/5
Right now we face important "inter-temporal" tradeoffs. This means we must trade off costs and benefits today versus costs and benefits tomorrow. The epidemic and the economy are both dynamic objects, changing over time as we act in different ways, and they are intertwined. 3/5
Read 5 tweets
11 Nov 20
The UK government is flying blind, introducing policies without proper prior assessment of their likely impact on the epidemic or the economy. This is now completely clear. Below I'll go through what we now know.
#EconTwitter #lockdown 1/15
On Oct 18, I wrote a long thread about the misalignment between disease control advice received by the government from SAGE and the economic advice received by the Treasury. 2/15
I pointed out that disjointed advice was just not useful and that integrated economic-epidemiological analysis was badly needed. These are very complicated issues and we cannot afford to wing it and hope for the best. 3/15
Read 16 tweets
11 Nov 20
The Danish Economic Council’s recent report contains an entire 100 page chapter on economics and epidemiology, complete with self-contained intro to epi models and a review of the new literature. #econtwitter @t0nyyates @DORsSekretariat @DalgaardCarl 1/3
In addition, it contains a number of different policy experiments and a very thorough discussion of the interaction of the economy and the virus. This is seriously impressive policy work and a model for how things can be done. 2/3
Notably, this body is set up to give unbiased, un-politicised advise to guide policy and inform the public. There’s no reason we cannot have a body doing that kind of valuable work in the UK. Who will step up and back such an initiative? 3/3
Read 4 tweets
1 Nov 20
I think they made two early tactical errors that made it difficult to formulate a comprehensive strategy. (1) lack of early and widespread random texting meant they didn’t understand the scale of the problem. They had only dim idea of speed of spread and of asymptomatic ratio.
(2) by design, they set up silos of expertise that seem to have had minimal mutual communication and coordination. Each would give independent advice on different aspects, and each largely ignoring effects of recommendations on other domain.
I do not want to ignore the tactical missteps as I think they are sufficiently legio to explain many of our problems, even if we disregard the apparent lack of strategy.
Read 8 tweets

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