Author(s)

Yasunori Fujita

Keio University, Tokyo, Japan.

In the present paper, we attempt to find a way of preventing the spread of the new coronavirus without deteriorating the economy, by constructing an intertemporal model based on the dynamic optimization theory. More precisely, following the procedures used in dynamic optimization, we derive the optimal intertemporal path of the contact rate among the workers in an economy where the new coronavirus is spreading widely. It is revealed that under the optimal regulation, the workers should contact with other workers less and less at first, and then contact with other workers more and more until the contact rate reaches certain point.

Coronavirus, Dynamic Optimization, Hamiltonian, Euler Equation, Contact Rate

Fujita, Y. (2020) How Could We Prevent Spread of the Coronavirus without Deteriorating Economy?. Modern Economy, 11, 1280-1287. doi: 10.4236/me.2020.117091.