Externalities of Pandemics
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 23 Mar 2020
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.
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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