A balance act: minimizing economic loss while controlling novel coronavirus pneumonia

The outbreak of Novel Coronavirus Pneumonia (NCP) has significantly affected China and beyond. How to effectively control such epidemic has gradually become a global issue. This paper reviews the economic impact of major epidemics such as SARS, H1N1, and Ebola at the micro-, sector-, and macro-level...

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Bibliographic Details
Published in:Journal of Chinese Governance 2020
Main Authors: Gong, Binlei, Zhang, Shurui, Yuan, Lingran, Chen, Kevin Z
Format: Web Resource
Language:English
Online Access:Request full text
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Summary:The outbreak of Novel Coronavirus Pneumonia (NCP) has significantly affected China and beyond. How to effectively control such epidemic has gradually become a global issue. This paper reviews the economic impact of major epidemics such as SARS, H1N1, and Ebola at the micro-, sector-, and macro-level. The challenge of effective epidemic control is to achieve a balance between viral transmission reduction and economic cost. This paper then summarizes three main methods to evaluate the effectiveness of several control policies. We also find that the adequacy and authenticity of information disclosure is of great importance to minimize economic loss, as either public panic due to overestimation or lack of public awareness due to underestimation can cause additional negative economic impacts. Accurate and transparent disclosure of information plays a crucial role associated with fighting against the epidemic. Finally, the paper puts forward a number of policy recommendations to minimize economic loss while controlling the spread of COVID-19.