Table 2.

Vaccination and Financial Markets

	With Vaccine		No Vaccine		Unexpected Vaccine
	Constr’d	Perfect	Constr’d	Perfect	Constr’d	Perfect
Health
Vaccinations	64	70	–	–	55	70
Fatalities	0.25	0.06	0.83	0.08	0.39	0.07
Mitigation Costs (% output)
Social Distancing	26	37	27	127	21	36
Vaccine Expenditure	0.2	0.3	–	–	0.2	0.3
Welfare Cost of Pandemic
Consumption Equiv.	$-1.08$	$-0.48$	$-1.88$	$-1.40$	$-1.11$	$-0.49$

Note: The columns labeled “Constr’d” (“Constrained”) are our baseline model with financial frictions, while the columns labeled “Perfect” are the model with perfect financial markets. The “No Vaccines” scenario is implemented as ${\overline{X}}_t=0$ for all t and corresponds to the results in Arellano, Bai, and Mihalache (2020a, Section 4.6) augmented with a second wave. Under the “Unexpected Vaccine” scenario, agents are unaware of the eventual availability of the vaccine