Colorized transmission electron micrograph of Avian influenza A H5N1 viruses (seen in gold). Image provided by CDC/C. Goldsmith, J. Katz, and S. Zaki.

Pandemic Economic Resources

Since the fall of 2005 there have been several serious studies of the macroeconomic effect a mild, moderate, or severe influenza pandemic might have on the economy of individual nations and the world as a whole. These studies range from those concerned principally with the impact of this event on stock and bond investments to an analysis of the impact on production, consumption, and GDP. While not a complete collection of reports of this type, the resources listed below represent some on the best examples I have identified.
 
Grattan Woodson

Nesbitt Burns Investors Guide to Avian Flu Pandemic Aug2005.pdf
BMO Nesbitt Burns Research published An Investor’s Guide to Avian Flu in August 2005. The authors, Sherry Cooper, PhD and Donald Coxe provide one of the first carefully thought out assessment of the effect a pandemic would have on financial investments. What distinguishes their report was its being based upon a scenario for the pandemic that allowed for the authors to use economic modeling to make economic projections for the macroeconomy that could then be assessed from a sector-by-sector viewpoint.
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Don’t Fear Fear of Panic Panic Pandemic Economics 11Oct2005.pdf
BMO Nesbitt Burns economist Sherry Cooper, PhD published her second avian influenza study Don’t Fear Fear or Panic Panic; an economist’s view of pandemic flu in October 2005. In her study, Dr. Cooper bases her analysis on a very thorough pandemic model that takes into consideration the gravity of a pandemic and the potential for there to be widespread economic disruption caused by worker absenteeism. The effect this has on production, transportation, and distribution of goods and services is explored in a thoroughgoing and expert manner. The study provides investors with guidance for weathering the financial storm a severe pandemic is sure to bring.
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Macroeconomic Effect of Pandemic US CBO 8Dec2005.pdf
At the request of Senator Bill Frist (R-TN), the Congressional Budget Office conducted a study of the macroeconomic effect of pandemic influenza on the US economy. The study, A Potential Influenza Pandemic: Possible Macroeconomic Effects and Policy Issues, was released in December 2006. This study uses a simple model to project the economic impact two scenarios, mild and severe. The model used projects rates of absenteeism expected for various industrial sectors of the economy and determines the effect this will have on US GDP. It predicts little or no impact from a mild pandemic and a modest economic recession costing the US $675 billion dollars with a severe pandemic.
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Macroeconomic Effect of Pandemic US CBO 8Dec2005.pdf
At the request of Senator Bill Frist (R-TN), the Congressional Budget Office conducted a study of the macroeconomic effect of pandemic influenza on the US economy. The study, A Potential Influenza Pandemic: Possible Macroeconomic Effects and Policy Issues, was released in December 2006. This study uses a simple model to project the economic impact two scenarios, mild and severe. The model used projects rates of absenteeism expected for various industrial sectors of the economy and determines the effect this will have on US GDP. It predicts little or no impact from a mild pandemic and a modest economic recession costing the US $675 billion dollars with a severe pandemic.
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Osterholm Congressional Testimony Dec 2005.pdf
On December 7, 2005, Michael Osterholm, PhD testified before the House Committee on International Relations. In his testimony, he explained how the current organization of this country’s “just in time ”inventory management system places us at risk for an economic collapse. He focused specifically on several key industries that he argued deserved special consideration to keep them operating during a pandemic because they are critical to the health and security of the nation. He called this concept “critical product continuity”. Examples given were drugs, healthcare supplies, food, water service, waste removal and mortuary services.
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Are We Missing the Point of the Pandemic Planning 2005.pdf
Are We Missing the Point of Pandemic Planning is a scenario driven exploration of what the business climate may be like if the world experiences a major influenza pandemic along the lines of 1918. The authors, Gary Sikich and John Stagl translate the morbidity and mortality projections into real world consequences for companies. They explore how globalization has increased the complexity of the world economy and created more risk due to rising interdependence between nations. The author’s recognize that models of an event as complex as an influenza pandemic are unreliable at best and misleading at worst. Irrespective of this view, they project a devastatingly realistic scenario for the US and world economy during and after a severe influenza pandemic.
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Business Pandemic Planning Checklist US DHHS 6Dec2005.pdf
The DHHS and the US CDC have prepared a series of checklists for use by small business to help them prepare for influenza pandemic. The title of this document is The Business Pandemic Influenza Planning Checklist and this is exactly what the document delivers. There two brief surveys used to inform business planners about the areas that may need attention to ensure business survival. The first concentrates business continuity issues and the second on the affect a pandemic may have on a businesses employees and customers. The checklist is a good place to start the process of forming a business pandemic preparedness plan for small and medium sized companies. The results of the survey will help business owner*#8217;s focus on what needs to be done to survive the pandemic intact. scenario for the US and world economy during and after a severe influenza pandemic.
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Insurance Infor Inst Pandemic Can life insurance survive Pandemic 17Jan2006.pdf
Pandemic: Can the Life Insurance Industry Survive the Avian Flu? This report was sponsored by the Insurance Information Institute and written by an economist, Steven Weisbart. He estimates that death benefits payouts will range from $31 billion for a mild to $133 billion for a severe pandemic. This study explores how the deaths of insured in various age groups affect the benefit payouts. He concludes that industry payouts will be greatest if the pandemic results in a high death rate among the age 15 to 40 year old group, as was the case in 1918. While reserves and capital overall are adequate, the severe scenario could bankrupt some insurance carriers.
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Bulls, Bears, and Birds Preparing for Pandemic Deutsche Bank 25Sep2005.pdf
Bulls, Bears, and Birds: Preparing the Financial Community for a Pandemic is a conference report sponsored by Deutsche Bank on September 25, 2005. This summary describes the presentations made by at the conference. The purpose of these presentations is to bring the financial community up to speed on basic pandemic issues including some facts about the H5N1 virus and the dangers of the pandemic. NYC’s plans for responding to pandemic influenza is presented as are the approach to developing an efficacious vaccine. Despite the conference name, there is no investment advice or discussion reported.
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Global MacroEcon Effect of Pandemic Lowy Inst Feb2006.pdf
The Lowery Institute sponsored study; Global Macroeconomic Consequences of Pandemic Influenza is one of the most thorough treatments of the issue published to date. The authors examine to potential impact of four specific pandemic scenarios ranging from mild to ultra severe on world production of goods and services. Projections are provided for most major countries or producing regions for each scenario. The study estimates that a mild pandemic would reduce global GDP by $330 billion with the most severe ultra pandemic reducing production and consumption by $4.4 trillion. This is one of the most comprehensive studies performed to date and provides a level of detail not found in other published open-source material.
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World Economic Impact of Bird Flu Pandemic IMF 28Feb2006.pdf(388kb)
The Global Economic and Financial Impact of an Avian Flu Pandemic and the Role of the IMF is a study by the International Monetary Fund released on February 6, 2006. This report examines the effect a pandemic might have on flows on funds between countries in the developed, developing, and undeveloped world and suggests policy options to prevent the development of a credit crisis occurring concurrently with the pandemic. The study bases its projections on pandemic scenarios provided by the WHO and predict that the impact of a pandemic could be initially severe but that world economies will quickly rebound from the shock. This report is rather bureaucratic in style and weak in its methods and assumptions compared to those produced by the NGOs and private investment advisors.
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Cooper S., Avian Flu Crisis Update Mar2006.pdf
In The Avian Flu Crisis: An Economic Update, Sherry Cooper, PhD provides new insights on the national and global impact of a potential avian flu pandemic. The update was published on March 12, 2006. It discusses the CBO, Asian Development Bank, and Lowy Flu Studies and compares their models to her own. Dr. Cooper provides the reader with a clear assessment of how pandemic influenza can disrupt the supply and consumption of goods and services. She writes in an unambiguous style that is unusually transparent and entertaining compared with most economists. Her practical approach to this issue is refreshing and helpful for those trying to grasp the economic significance of an avian flu pandemic.
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Are We Missing the Point of the Pandemic Planning 2005.pdf
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BCP_Pandemic_Preparedness.pdf
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Business Pandemic Response.pdf
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Emergency Management Plan for Business FEMA 1993.pdf
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Influenza Pandemic Simulation Booz Allen 2006.pdf
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Its Not Flu As Usual ATH.pdf
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