Externality and the Problem of Optimum Production of the Covid 19 Vaccine

Authors : Tuğba DAYIOĞLU, Yılmaz AYDIN

Pages : 0-0

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Publication Date : 2023-01-02

Article Type : Research Paper

Abstract :Abstract The COVID 19 pandemic, a new type of coronavirus, started about a year and a half ago. The rapidly developing COVID-19 pandemic has not only put many countries in the world into a health crisis; but also increasingly brought along economic and social crises. According to economic theory, the optimum production level of goods that emit positive externalities under free market conditions remains below the socially desirable amount. Since externality requires consideration of societal benefits and costs rather than private benefits and private costs, the state should be a regulator in the market. The COVID 19 vaccine is heavily subsidized and consumption expenditures are insufficient and covered by the public. Despite this, a proposal to waive the intellectual property right was put forward to ensure social immunity as soon as possible by increasing the rate of vaccination at the global level; however, no consensus has been reached. In this study, the lack of COVID 19 vaccine supply and how to remove the restrictions on this issue are discussed. In the first chapter, the concept of public goods is explained in detail. The subject of the second part is the intervention of the state in the production of externalities and goods that create externalities. In the third and last part, the inadequacy of the COVID 19 vaccine supply and the measures to be taken to increase the supply is discussed.
Keywords : public goods, externatility, covid19, optimum production