COVID ECONOMICS VETTED AND REAL-TIME PAPERS ISSUE 74 30 MARCH 2021 VACCINATIONS: AN SVIR MODEL Christian Gollier RENTAL EVICTION MORATORIA Xudong An, Stuart A. Gabriel SMART CONTAINMENT and Nitzan Tzur-Ilan Alexandra Fotiou and Andresa Lagerborg FISCAL SUPPORT WORKING FROM HOME: AND FISCAL SPACE PRODUCTIVITY WITHIN FIRMS Ablam Estel Apeti, Jean-Louis Combes, Ritsu Kitagawa, Sachiko Kuroda, Xavier Debrun and Alexandru Minea Hiroko Okudaira and Hideo Owan Covid Economics Vetted and Real-Time Papers Covid Economics, Vetted and Real-Time Papers, from CEPR, brings together formal investigations on the economic issues emanating from the Covid outbreak, based on explicit theory and/or empirical evidence, to improve the knowledge base. Founder: Beatrice Weder di Mauro, President of CEPR Editor: Charles Wyplosz, Graduate Institute Geneva and CEPR Contact: Submissions should be made at https://portal.cepr.org/call-papers- covid-economics. Other queries should be sent to [email protected]. 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Salvanes, Norwegian School of Antonio Fatás, INSEAD Singapore and CEPR Economics and CEPR Pierre-Yves Geoffard, Paris School of Paola Sapienza, Northwestern University and Economics and CEPR CEPR Francesco Giavazzi, Bocconi University and Moritz Schularick, University of Bonn and CEPR CEPR Christian Gollier, Toulouse School of Paul Seabright, Toulouse School of Economics and CEPR Economics and CEPR Timothy J. Hatton, University of Essex and Flavio Toxvaerd, University of Cambridge CEPR Christoph Trebesch, Christian-Albrechts- Ethan Ilzetzki, London School of Economics Universitaet zu Kiel and CEPR and CEPR Karen-Helene Ulltveit-Moe, University of Beata Javorcik, EBRD and CEPR Oslo and CEPR Simon Johnson, MIT and CEPR Jan C. van Ours, Erasmus University Sebnem Kalemli-Ozcan, University of Rotterdam and CEPR Maryland and CEPR Rik Frehen Thierry Verdier, Paris School of Economics and CEPR Ethics Covid Economics will feature high quality analyses of economic aspects of the health crisis. However, the pandemic also raises a number of complex ethical issues. Economists tend to think about trade-offs, in this case lives vs. costs, patient selection at a time of scarcity, and more. In the spirit of academic freedom, neither the Editors of Covid Economics nor CEPR take a stand on these issues and therefore do not bear any responsibility for views expressed in the articles. Submission to professional journals The following journals have indicated that they will accept submissions of papers featured in Covid Economics because they are working papers. Most expect revised versions. This list will be updated regularly. American Economic Journal, Applied Journal of Economic Theory Economics Journal of the European Economic American Economic Journal, Association* Economic Policy Journal of Finance American Economic Journal, Journal of Financial Economics Macroeconomics Journal of Health Economics American Economic Journal, Journal of International Economics Microeconomics Journal of Labor Economics* American Economic Review Journal of Monetary Economics American Economic Review, Insights Journal of Public Economics American Journal of Health Journal of Public Finance and Public Economics Choice Canadian Journal of Economics Journal of Political Economy Econometrica* Journal of Population Economics Economic Journal Quarterly Journal of Economics Economics of Disasters and Climate Review of Corporate Finance Studies* Change Review of Economics and Statistics International Economic Review Review of Economic Studies* Journal of Development Economics Review of Financial Studies Journal of Econometrics* Journal of Economic Growth (*) Must be a significantly revised and extended version of the paper featured in Covid Economics. Covid Economics Vetted and Real-Time Papers Issue 74, 30 March 2021 Contents The welfare cost of vaccine misallocation, delays and nationalism 1 Christian Gollier COVID-19 rental eviction moratoria and household well-being 25 Xudong An, Stuart A. Gabriel and Nitzan Tzur-Ilan Did fiscal space influence Covid-19’s fiscal response? 71 Ablam Estel Apeti, Jean-Louis Combes, Xavier Debrun and Alexandru Minea Smart containment: Lessons from countries with past experience 94 Alexandra Fotiou and Andresa Lagerborg Working from home: Its effects on productivity and mental health 142 Ritsu Kitagawa, Sachiko Kuroda, Hiroko Okudaira and Hideo Owan 1 Covid Economics Issue 74, 30 March 2021 The welfare cost of vaccine misallocation, delays and nationalism1 Christian Gollier2 Date submitted: 27 March 2021; Date accepted: 27 March 2021 I calibrate an eco-epidemiological age-structured SIR model of the B.1.1.7 covid variant on the eve of the vaccination campaign in France, under a stop-and-go lockdown policy. Three-quarters of the welfare benefit of the vaccine can be achieved with a speed of 100,000 full vaccination per day. A 1-week delay in the vaccination campaign raises the death toll by approximately 2,500, and it reduces wealth by 8 billion euros. Because of the large heterogeneity of the rates of hospitalization and mortality across age classes, it is critically important for the number of lives saved and for the economy to vaccinate older people first. Any departure from this policy has a welfare cost. Prioritizing the allocation of vaccines to the most vulnerable people save 70k seniors, but it also increases the death toll of younger people by 14k. Vaccine nationalism is modeled by assuming two identical Frances, one with a vaccine production capacity and the other without it. If the production country vaccinates its entire population before exporting to the other, the global death toll would be increased by 20\%. I also measure the welfare impact of the strong French Covid Economics 74, 30 March 2021: 1-24 anti-vax movement, and of the prohibition of an immunity passport. 1 I thank Jiakun Zheng and participants to my keynote lecture at the 14th Financial Risks International Conference in Paris for helpful comments. The research leading to these results has received the support from the ANR grants Covid-Metrics and ANR-17-EURE-0010 (Investissements d'Avenir program). 2 Toulouse School of Economics, University of Toulouse-Capitole. Copyright: Christian Gollier COVID ECONOMICS VETTED AND REAL-TIME PAPERS 2 1 Introduction At the end of 2020, two key events