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Mr. Francesco Grigoli and José M. Mota
The large economic costs of full-blown lockdowns in response to COVID-19 outbreaks, coupled with heterogeneous mortality rates across age groups, led to question non-discriminatory containment measures. In this paper we provide an assessment of the targeted approach to containment. We propose a SIR-macro model that allows for heterogeneous agents in terms of mortality rates and contact rates, and in which the government optimally bans people from working. We find that under a targeted policy, the optimal containment reaches a larger portion of the population than under a blanket policy and is held in place for longer. Compared to a blanket policy, a targeted approach results in a smaller death count. Yet, it is not a panacea: the recession is larger under such approach as the containment policy applies to a larger fraction of people, remains in place for longer, and herd immunity is achieved later. Moreover, we find that increased interactions between low- and high-risk individuals effectively reduce the benefits of a targeted approach to containment.
Mr. Francesco Grigoli and José M. Mota

., 2020 ; Coibion et al., 2020 ; Gupta et al., 2020 ). At the same time, voluntary social distancing in response to rising infections also took a toll on economic activity as people feared engaging in social interactions ( Caselli et al., 2020 ; Chetty et al., 2020 ; Goolsbee and Syverson, 2020 ; Maloney and Taskin, 2020 ). Months after the beginning of the pandemic, many countries are experiencing a resurge in the number of infections and the need to weight health and economic considerations continues to animate the debate about optimal containment policies