Once vaccines hit the market, what then?: Jakarta Post contributor

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In the article, the writer says that mandatory vaccination deals with social welfare maximisation, but equitable allocation of vaccines will be the most challenging task due to short supplies.. Read more at straitstimes.com.

JAKARTA - As governments, research organisations and pharmaceutical companies race to find vaccines for the novel coronavirus, a recent survey published in The Lancet found that only 67 per cent of the United States population would accept a vaccine for Covid-19 if it were recommended for them.

The estimates of the cost to the global economy range from US$5.5 trillion to $8.8 trillion, according to Asian Development Bank. For the first question, we can apply the economic theory of"merit goods". A merit good is characterised by its meritorious impact, and despite the fact that it is not typically a public good, pubic funds may be used to provide it for mass consumption .

The global loss from the Covid-19 pandemic is huge and still counting if the world fails to control it. Economic costs include: high treatment costs, productivity loss, overwhelmed health workers and crowding out non-Covid-19 patients. On Sept 2, Erick Thohir, the Executive Director of the Indonesian government's Covid-19 Response and Economic Recovery Committee, said the government planned to provide free vaccines for only 93 million Indonesians and let the rest pay for themselves.

Another challenge comes from the people who are unwilling to take the vaccine shot because of their beliefs. It is highly unlikely that the vaccine doses will be ready quickly for all the population. There will be incremental phases of provision based on the production capacity of pharma companies.

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