In this paper we consider a stochastic SIR (susceptible→infective→removed) epidemic model in which individuals
may make infectious contacts in two ways, both within `households' (which for ease of exposition are assumed to have
equal size) and along the edges of a random graph describing additional social contacts. Heuristically motivated
branching process approximations are described, which lead to a threshold parameter for the model and methods for
calculating the probability of a major outbreak, given few initial infectives, and the expected proportion of the
population who are ultimately infected by such a major outbreak. These approximate results are shown to be exact as the
number of households tends to infinity by proving associated limit theorems. Moreover, simulation studies indicate that
these asymptotic results provide good approximations for modestly sized finite populations. The extension to
unequal-sized households is discussed briefly.
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