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Using an integrated epi-econ model, we compute the value of vaccines for Covid-19, both under a planner’s solution and in competitive equilibrium. The specific model, developed in Boppart, Harmenberg, Hassler, Krusell, and Olsson (2020), factors in not just value-of-life aspects along with standard economic variables but also the value of leisure activities that rely on a social component. We find that the societal value of vaccination is large; we estimate that, translated into monetary terms, the value of vaccinating one young individual in the competitive equilibrium is $17,800. Externalities are large: less than half the societal value is internalized by individuals (assuming that they act purely in their self-interest). Finally, behavioral responses are important, with a substantial share of the value of vaccines being attributed to people enjoying more socially-oriented leisure when more people are vaccinated.

Could a new financial crisis, brought on by the Covid-19 pandemic, lead to Italy’s exit from the eurozone? Lucio Baccaro, Björn Bremer and Erik Neimanns present evidence from a new survey experiment on Italian attitudes toward a European bailout and exit from the euro. They find that a majority of voters would opt to stay in the euro if a bailout did not involve conditionality, but that there would be a majority for leaving if a bailout were contingent on austerity policies.

The EU’s Covid-19 vaccination rollout has received intense criticism for failing to keep pace with the vaccination programmes of other countries, notably the UK. Gareth Davies argues that while the UK has undoubtedly managed to vaccinate a greater share of its population than EU states thus far, the facts are more nuanced than the headline ... Continued

Countries in Latin America and Europe, despite their substantial differences, are currently wrestling with a similar strategic question: whether they should engage in regional integration or ‘go it alone’. Carlos Cruz Infante and Roland Benedikter present a detailed comparison of Latin America and the EU across six key indexes. Their findings suggest there remain substantial ... Continued

Low German wages are often cited as a key contributing factor to imbalances in the Eurozone. Donato Di Carlo and Martin Höpner demonstrate that while nominal unit labour cost growth in Germany consistently undershot that of other Eurozone countries in the first decade of the euro, the country has undergone a ‘silent rebalancing’ following the financial crisis. Unfortunately, this incomplete process is likely to be reversed by the shock from Covid-19.

At the moment, governments are subsidising wage costs and lending businesses money to enable them to survive the pandemic. To spread the burden more fairly through society, Tsjalle van der Burg (University of Twente) proposes imposing price controls instead.

With the economic impact of Covid-19 shaping up to be immense and inevitable, Latin America desperately needs to reverse the failures of its export-oriented development model, writes Tobias Franz (SOAS, University of London).

The dividends in the UK companies have been on the rise, despite uncertain economic outlook due to COVID-19, pension deficits and irrespective of whether the companies have been making profits. This column analyses the reasons for such a dramatic increase in dividend payouts. We attribute it to pressure from investors in three fundamental ways: the threat of takeovers, shareholder value-oriented corporate governance practices measured by director independence and board equity incentives, and short-term trading and institutional ownership patterns.

Soon, we will all have convinced ourselves that we knew all along what was going to happen. Hindsight bias is how our brain manages its scarce resources and protects us from losing faith.The reality is that for the time being, both policy makers and business leaders have to keep making some of the biggest decisions of their lives under some of the worst uncertainty of their lives. In a previous article, we talked about how we can use resilience thinking to make better choices. Today, we want to look at another crucial aspect: how can we ensure the legitimacy of our actions, i.e., reflect on how much support we can expect from the general public or our employees for what we are about to ask of them.Megaproject management may not be the first area of expertise you turn to for advice in the current situation. We will explain in a little while why you should. Our interest in megaproject management focuses on the risk management side of things, particularly risks surrounding public support (or opposition) of these rather impactful and wide ranging endeavours. Here is why looking at megaprojects for inspiration in the current situation is interesting: They are very significant investments, they cause changes at societal scale (at least locally), they are unique, with a significant dose of first-of-a-kind actions, and at some point they are over and transition what they build into operations. That does sound a bit familiar these days.While legitimacy is important, there are also other factors. Most notably, legality and feasibility. A common pitfall for managers of megaprojects and business leaders or policymakers alike, is to take action that is legal (or at least: later legalised) and feasible, but not seen as legitimate. That leads into dangerous territory of provoking significant resistance.There are three aspects to the legitimacy of megaprojects that also apply to the legitimacy of the rather drastic actions being taken today by governments and business leaders.

Published online on March 17th, 2020 The COVID-19 pandemic is a public health emergency, but it also has the potential to impact on many other elements of European societies beyond health services. Jelena Dzankic and Lorenzo Piccoli write on the effect the outbreak is having on the uses and meanings of citizenship. The rapid spread of the coronavirus has wrecked human mobility, and profoundly disrupted the daily lives of millions of people worldwide. Its effects are mirrored in policies such as evacuations from affected areas or spaces, travel restrictions, and confinement in quarantines, but also in social and behavioural practices ranging from panic-shopping to the alteration of greeting customs that entail physical contact. These occurrences show how profoundly the virus has cut into the relationship between citizenship as a guarantee of the state’s responsibility for the well-being of its citizens, on the one hand, and human rights and practices of solidarity, on the other.