Amb motiu del tancament d'estiu, la validació de documents es reprendrà a partir del 28 d'agost de 2026. Disculpeu les molèsties.
Con motivo del cierre de verano, la validación de documentos se reanudará a partir del 28 de agosto de 2026. Disculpad las molestias
Due to the summer closure, document validation will resume starting August 28, 2026. We apologize for any inconvenience.

Files

E23-439_Brotherhood+Jerbashian.pdf (482.41 KB)

Document type

Working paper

Publication date

2023

Publication license

cc-by-nc-nd, (c) Brotherhood et al., 2023
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/192402

Firm behavior during an epidèmic [WP]

Journal Title

Authors

Director/Tutor

Journal ISSN

Volume Title

Related resource

Abstract

We derive a model in which firms operate in an epidemic environment and internalize infections among their employees in the workplace. The model is calibrated to fit the moments of the Covid-19 epidemic. We show that firms have incentives to fight against infections and can do so very effectively by increasing teleworking and rotating employees between on-site work, teleworking, and leave. The fight against infections in firms flattens the aggregate infections curve. Subsidies to teleworking reduce infections and save lives. Subsidies to sick leave reduce the cost of sick workers and raise workplace infections. Firms delay and weaken the fight against infections during economic downturns. We also consider the problem of a government that values output and lives. We show that the government prefers to severely restrict the epidemic by tolerating short-term output losses when it has a high valuation of life.

Subject

COVID-19, Temps i comportament econòmic, Conducta organitzacional, Teletreball

Subject (English)

COVID-19, Time and economic reactions, Organizational behavior, Telecommuting

Citation

Collections

UB Economics – Working Papers [ERE]

Citation

BROTHERHOOD, Luiz and JERBASHIAN, Vahagn. Firm behavior during an epidèmic [WP]. UB Economics – Working Papers. 2023. Vol.  E23/439. [consulted: 11 of August of 2026]. Available at: https://hdl.handle.net/2445/192402

Export metadata

JSON - METS

Share record