COVID-19 crisis management and cost estimation models: bureaucratic government coaction vs. spontaneous social coordination

Abstract

This paper reviews the management of the COVID-19 crisis and the difficulty of cost estimation model, comparing centralized management or bureaucratic government coaction and the agile market alternative or spontaneous social coordination. This is a study of Political Economy and Health Economics from the perspective of Austrian Economics. We describe and compare the alternative models, which are adapted to the current crisis. The analysis is based on the theorem of the impossibility of the economic calculation under coactive systems, and other principles of economy. In this context we pay also attention to collateral problems of the centralized and coactive management. Finally we propose a solution based on dynamic efficiency and the constitutions of wellbeing economics.