The non-intended consequences of the epidemic control decisions to contain the COVID-19 pandemic are huge and affect the well-being of European citizens in terms of economics, social relationships and health: Europe is experiencing the largest recession since WWII; social contacts have been interrupted; people avoid seeking medical treatment in fear of infection. The overarching objective of this project is to understand these non-intended consequences and to devise improved health, economic and social policies. In our policy recommendations, we strive to make healthcare systems and societies in the EU more resilient to pandemics in terms of prevention, protection and treatment of the population 50+, a most vulnerable part of the population. The project aims to identify healthcare inequalities before, during and after the pandemic; to understand the lockdown effects on health and health behaviours; to analyse labour market implications of the lockdown; to assess the impacts of pandemic and lockdown on income and wealth inequality; to mitigate the effects of epidemic control decisions on social relationships; to optimise future epidemic control measures by taking the geographical patterns of the disease and their relationship with social patterns into account; and to better manage housing and living arrangements choices between independence, co-residence or institutionalisation. The project pursues a transdisciplinary and internationally comparative approach by exploiting the data sources of the SHARE research infrastructure. It covers all EU MS. The project’s team represents medicine, public health, economics and sociology and has worked together since the creation of SHARE. It is experienced in translating data analysis into concrete policy advice. The project’s policy recommendation are targeted at policy makers in the Commission and in national ministries as well as at national and international NGOs and social organisations.

This proposal outlines an agenda that aims to improve our understanding of economies with inattentive agents. Attention to detail, not only to current news, but also to how the world works in general, is central to how we interact with the environment. In the first part of the agenda, we will study how agents come up with the simplified mental models they use in their decision-making. The aim is to provide a new alternative to rational expectations. We will address the question of endogenous model uncertainty by sidestepping the largely statistical nature of previous work. Our agents learn about a model directly, i.e., all information on the details of the correct model is readily available. The envisioned implications can speak to issues such as the expectations formation and formation of narratives, polarization of opinions, and demand for public policy. In the second part, we will study how a government optimally intervenes in markets if it finds it costly to get the necessary information. On one hand, a government does not possess the local information of decentralized markets. On the other, markets on their own often generate suboptimal social outcomes. We will explore what information the government should collect, how to use it for regulation, and when instead it should leave markets unaffected. In the third part, we will leverage recent theories of attention allocation and use uniquely detailed data on attention and treatment choices by hospital personnel (including physicians and nurses). This will allow us to explore in more detail than before what theories describe realistic choices well. Moreover, we will eventually aim at a very practical goal: how to help clinicians decrease their cognitive load and improve medical choices.