A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy. Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover
Assumptions
Govt policy reduces infection and economic growth in the same way.
Govt policy is trigger when reported COVID-19 case are 10 or less.
A greater number of COVID-19 cases has a negative effect on the economy. This is due to economic signalling that all is not well.
Interesting insights
Higher testing rates trigger more rapid government intervention, which reduces infectious cases. The impact on the economy, though, of higher detected cases is negative.
