Globalization and Pandemics

Pol Antràs, Stephen J. Redding, Esteban Rossi-Hansberg

Research output: Contribution to journalArticlepeer-review

14 Scopus citations

Abstract

We provide theory and evidence on the relationship between globalization and pandemics. Business travel facilitates trade and travel leads to human interactions that transmit disease. Trade-motivated travel generates an epidemiological externality across countries. If infections lead to deaths, or reduce individual labor supply, we establish a general equilibrium social distancing effect, whereby increases in relative prices in unhealthy countries reduce travel to those countries. If agents internalize the threat of infection, we show that their behavioral responses lead to a reduction in travel that is larger for higher-trade-cost locations, which initially reduces the ratio of trade to output.

Original languageEnglish (US)
Pages (from-to)939-981
Number of pages43
JournalAmerican Economic Review
Volume113
Issue number4
DOIs
StatePublished - Apr 2023

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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