A model of COVID-19 outbreaks and responses from the government with the impact on the local economy and medical supply. 

It is assumed that the government policy is triggered and rely on reported COVID-19 cases when the confirmed cases are 10 or less. 

Interesting insights

The infection rate will decline if the government increase the testing ranges, meanwhile,  the more confirmed cases will increase the pressure on hospital capacity and generate more demand for medical resources, which will promote government policy intervention to narrow the demand gap and  affect economic performance by increasing hospital construction with financial investment.

INTRODUCTION

This is a balanced loop model that demonstrates how COVID 19 outbreak in Burnie and the response of the government (e.g. by enforcing health policies: Lockdown; quarantine, non-necessary business closure; border closure) affect the local economy.  This model has 13 positive loops and seven negative loops.  Government response is dependent on the number of reported COVID-19 cases which in turn thought to be dependent on the testing rates less those who recovered from COVID 19 and dead. Economic activity is dependent on the economic growth rate, increased in online shopping, increased in unemployment, number of people who do not obey the rules, COVID 19 cases and health policies.

 ASSUMPTIONS

 · Both infection and economic growth is reduced by enforcing government policies

 · However, the negative effect of government policies is reduced by the number of people who do not obey government health policies

 · Govt policies are enforced when the reported COVID-19 case are 10 or greater.

 ·     Number of COVID cases reported is dependent on the testing rates less those who recovered and dead.

 ·   The higher number of COVID-19 cases have a negative effect on local economy. This phenomena is known as negative signalling. 

 ·   Government policies have a negative effect on economic activity because health policies limit both social and economic activities which directly or indirectly affect the economy in Burnie .  

 ·  This negative effect is somewhat reduced by the increase in online shopping and the number of people who do not obey heath rules.

 INTERESTING INSIGHTS

The test ratings seem to play a vital role in controlling COVID-19 outbreak. Higher Rates of COVID testings decrease the number of COVID 19 deaths and number of infected. This is because higher rates of testing accelerate the government involvement (as the government intervention is triggered earlier, 10 COVID cases mark is reached earlier). Delaying the government intervention by reducing the COVID testing rates increases the death rates and number of infected. 

Increased testing rates allow the figures (deaths, susceptible, infected) to reach a plateau quickly.