02052cas a2200229 a 4500 AALejournalIMF021350 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513560915 1018-5941 BD-DhAAL BD-DhAAL Assessing Targeted Containment Policies to Fight COVID-19. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The large economic costs of full-blown lockdowns in response to COVID-19 outbreaks, coupled with heterogeneous mortality rates across age groups, led to question non-discriminatory containment measures. In this paper we provide an assessment of the targeted approach to containment. We propose a SIR-macro model that allows for heterogeneous agents in terms of mortality rates and contact rates, and in which the government optimally bans people from working. We find that under a targeted policy, the optimal containment reaches a larger portion of the population than under a blanket policy and is held in place for longer. Compared to a blanket policy, a targeted approach results in a smaller death count. Yet, it is not a panacea: the recession is larger under such approach as the containment policy applies to a larger fraction of people, remains in place for longer, and herd immunity is achieved later. Moreover, we find that increased interactions between low- and high-risk individuals effectively reduce the benefits of a targeted approach to containment. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2020/277 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/277/001.2020.issue-277-en.xml IMF e-Library