The role of vaccination in a model of asset pricing during a pandemic

This paper examines the effect of pandemic vaccination on asset prices in a simple asset pricing model à la Lucas 1978. In this model, asset prices depend on susceptible individuals’ saving motives to insure against a reduction in labour income due to getting they get the virus. Hence distributing v...

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Detalles Bibliográficos
Autor principal: Saito, Yuta
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2022
Materias:
Research Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9022870/
https://www.ncbi.nlm.nih.gov/pubmed/35446918
http://dx.doi.org/10.1371/journal.pone.0266511
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author Saito, Yuta
author_facet Saito, Yuta
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description This paper examines the effect of pandemic vaccination on asset prices in a simple asset pricing model à la Lucas 1978. In this model, asset prices depend on susceptible individuals’ saving motives to insure against a reduction in labour income due to getting they get the virus. Hence distributing vaccine reduces precautionary saving motives and asset prices. This implies that reducing the income gap between susceptible and infected individuals, such as by cash handouts, eases the negative effect of vaccine supply on asset prices.
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spelling pubmed-90228702022-04-22 The role of vaccination in a model of asset pricing during a pandemic Saito, Yuta PLoS One Research Article This paper examines the effect of pandemic vaccination on asset prices in a simple asset pricing model à la Lucas 1978. In this model, asset prices depend on susceptible individuals’ saving motives to insure against a reduction in labour income due to getting they get the virus. Hence distributing vaccine reduces precautionary saving motives and asset prices. This implies that reducing the income gap between susceptible and infected individuals, such as by cash handouts, eases the negative effect of vaccine supply on asset prices. Public Library of Science 2022-04-21 /pmc/articles/PMC9022870/ /pubmed/35446918 http://dx.doi.org/10.1371/journal.pone.0266511 Text en © 2022 Yuta Saito https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Saito, Yuta
The role of vaccination in a model of asset pricing during a pandemic
title The role of vaccination in a model of asset pricing during a pandemic
title_full The role of vaccination in a model of asset pricing during a pandemic
title_fullStr The role of vaccination in a model of asset pricing during a pandemic
title_full_unstemmed The role of vaccination in a model of asset pricing during a pandemic
title_short The role of vaccination in a model of asset pricing during a pandemic
title_sort role of vaccination in a model of asset pricing during a pandemic
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9022870/
https://www.ncbi.nlm.nih.gov/pubmed/35446918
http://dx.doi.org/10.1371/journal.pone.0266511
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