Research Seminar: Hannes Mueller (Institute for Economic Analysis)

Title: "If You Have a Hammer: Optimal Dynamic Prevention Policy"

  • Date: 16 November 2021 from 12:00 to 13:15

  • Event location: DSE Seminar Room & Teams meeting

Abstract

Prevention is important in many areas such as health, crime, climate change and armed conflict. In this article we propose a dynamic model in which a policy maker has the choice between early action (prevention) and a late action (intervention). We show that intervention can crowd out prevention but that prevention crowds in intervention. This raises the possibility of too little prevention without a commitment to optimal policies. We then apply our model to data from a large monthly dataset of armed conflict and risk of the period 2010-2021.

Invited by: Giovanni Prarolo 

Local Organizer: Massimiliano G. Onorato