Profits, Pandemics, and Lockdown Effectiveness in Nursing Home Networks. A new GLO Discussion Paper by GLO Fellow Guy Tchuente and colleagues.

A new GLO Discussion Paper finds for the USA that ‘for-profit’ nursing homes experience higher COVID-19 death rates than ‘not-for-profit’ nursing homes.

GLO Discussion Paper No. 1131, 2022

Profits, Pandemics, and Lockdown Effectiveness in Nursing Home Networks Download PDF
by Pongou, Roland & Sidie, Ghislain Junior & Tchuente, Guy & Tondji, Jean-Baptiste

GLO Fellow Guy Tchuente

Guy Tchuente

Author Abstract: How do pandemics affect for-profit and not-for-profit organizations differently? To address this question, we analyze optimal lockdowns in a two-sector continuous-time individual-based mean-field epidemiological model. We uncover a unique solution that depends on network structure, lockdown effectiveness, and the planner’s tolerable infection incidence. Using unique data on nursing home networks in the United States, we calibrate the model and jointly quantify state-level lockdown effectiveness and preference for enforcing stringent containment strategies during the COVID-19 pandemic. We also empirically validate simulation results derived from the theoretical analyses. We find that for-profit nursing homes experience higher COVID-19 death rates than not-for-profit nursing homes. In addition, this differential health effect increases with lockdown effectiveness.

Vol. 35, Issue 4, October 2022: Journal of Population Economics (JOPE): 15 articles
Just released: CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021)! LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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