Externalities of Pandemics

This is a video of an online lesson on some of the externalities of pandemics. You can download the supporting presentation using the link below.

Download the presentation using this link

OECD report (2013)

“Reducing pandemic risk is a low priority in the health sector, which, moreover, cannot address the externalities involved."

Source: Dangers of a pandemic, Oleg Jonas, OECD, Published May 2013

What is a pandemic?

A pandemic is a disease epidemic that has spread across a large region, for instance multiple continents, or worldwide

What is an externality?

• An externality refers to a cost or benefit (spill-over) incurred or received by a third party.
• However, the third party has no control over the creation of that cost or benefit.
• An externality can be both positive or negative and can stem from either production or consumption of a good or service.
• Wide interpretation focuses on spill-overs outside of any market transaction or event