COVID-19: A Virus for the Rich and the Poor

We investigate household income patterns of COVID-19 infections. We apply econometric methods that account for the categorical dependent variable and for the fact that the sample, from an untapped dataset by economists, might not be random. Our empirical results reveal that the likelihood to be COVID-19 infected does not depend on how rich or poor an individual is. While this prima facie finding could be reflective of the missing supply side in the “COVID-19 immunity” market, it shows limitations of policies targeting households’ incomes. Therefore, R&D leading to the production of pharmaceutical methods apt to combat the virus could sustainably address this specific type of market failure: the missing supply in the presence of an extensive demand.