Unmasking the demand for masks: Analytics of mandating coronavirus masks

Abstract

This paper analytically examines the demand for surgical masks following the recent health precautions due to coronavirus. Using a simple linear demand curve and alternatively examining the impacts of requirements that mandate (a) the wearing of masks by frontline workers; (b) suggested but not required masking by the whole public; and (c) compulsory masking by the whole public. The impacts of the different scenarios on the price elasticity of demand are determined along with the slope (or the rate of change) of elasticity. Some of these results differ when a non‐linear demand curve is considered instead. The equilibrium mask prices increase when masks are universally mandated, whereas the consumer surplus is higher when masks are recommended but not mandated. However, the ranking of consumer surplus is shown to be sensitive to the supply elasticity of masks. These considerations enable a structured means to view the demand implications of masking requirements and provide some food for policy thought.

Do disease epidemics force economic activity underground? International evidence

“…4 Small businesses face special challenges as they lack direct access to financing from capital markets. Furthermore, increased demand combined with anti‐price gouging laws that result in shortages of necessary goods and services during epidemics (e.g., face masks [Goel & Haruna, 2021 ], disinfectants, etc.) offer unique opportunities for budding shadow entrepreneurs.…”

Managing the risk of COVID‐19 via vaccine passports: Modeling economic and policy implications

“…Thus, VPs would be a complementary good in demand, which could have related impacts on demand elasticities, market power, and pricing (Goel, 2009 ). The theoretical analysis by Goel and Haruna ( 2021 ) shows that social welfare would be greater when masks are recommended, but not mandated.…”

Death takes no bribes: Impact of perceived corruption on the effectiveness of non-pharmaceutical interventions at combating COVID-19

“…While this is not the first paper in the nascent literature on the link between corruption and COVID-19, it is the first to examine the link between corruption and the COVID-19 cases coming to light. Other researchers have focused on corruption-vaccination links ( Goel and Nelson, 2021 ; Goel and Nelson, 2021 , Goel and Haruna, 2021 ) and corruption-coronavirus fatalities ( Farzanegan, 2021 ). Given the multidimensional nature of corruption, with numerous causes and effects, effective policies to combat the pandemic require an understanding of the impacts of corruption on different aspects and stages of the pandemic (such as NPIs, vaccinations, fatalities and reporting).…”