Table B2.

Economic Parameters.

Preferences
${\mu }^y$	share of young	$85\%$	0.85
$\rho$	discount rate	$3.0\%$ per year	$\frac{0.03}{365}$
$T^y$	residual life expectancy young	47.8 years	47.8
$T^o$	residual life expectancy old	14.0 years	14.0
$\phi$	utility weight on hours	normalization	1.0
$\chi$	Frisch elasticity for hours	1.0	1.0
$\overline{u}$	value of life	VSL = 10.8$\times$ consumption p.c.	11.61
${\widehat{u}}^f$	disutility of fever	lose $30\%$ of baseline utility	-3.24
${\widehat{u}}^e$	disutility of emergency care	lose $100\%$ of baseline utility	-10.8
$\eta$	elasticity lux. demand to hospitalizations	CPI relative prices	$-156.5$
Technology and Fiscal Policy
${\mu }^b$	size of basic sector	$55\%$	0.55
$g$	pre-COVID govt. spending	$24.7\%$ of GDP	0.247
${\tau }^{*}$	pre-COVID tax rate	utilitarian optimal	0.303
$T^{*}$	pre-COVID transfer	budget balance	0.223
$\Theta$	hospital capacity	100,000 beds	0.000303
${\lambda }_o$	impact of overuse on mortality	25% higher mortality at 200,000	825