Epidemics in modern economies

TL;DR

This paper reviews how epidemics impact modern economies, discussing historical context, modeling approaches, mitigation strategies, and the economic consequences, with a focus on Covid-19 as a case study.

Contribution

It provides a comprehensive overview of epidemic modeling and economic impact analysis, integrating historical insights and future risk considerations.

Findings

Epidemics significantly disrupt economic activities.

Modeling infection spread aids in mitigation planning.

Covid-19 exemplifies complex system responses to pandemics.

Abstract

How are economies in a modern age impacted by epidemics? In what ways is economic life disrupted? How can pandemics be modeled? What can be done to mitigate and manage the danger? Does the threat of pandemics increase or decrease in the modern world? The Covid-19 pandemic has demonstrated the importance of these questions and the potential of complex systems science to provide answers. This article offers a broad overview of the history of pandemics, of established facts, and of models of infection diffusion, mitigation strategies, and economic impact. The example of the Covid-19 pandemic is used to illustrate the theoretical aspects, but the article also includes considerations concerning other historic epidemics and the danger of more infectious and less controllable outbreaks in the future.