The Effects of Economic Fluctuations on Health Care Expenditures of Iranian Households Using the DSGE Model

Authors

Hamid Reza Izadi, Chabahar Maritime University, IranFollow

JEL Classification System

C11, C24, D10, I10

Abstract

The health sector is a very important field that has attracted policymakers’ attention due to its high importance. Such importance is more understandable when we know that health improvement results in human capital enhancement through the accumulation of health capital. Given existing economic shocks, the effectiveness of the health and Care services sector has led to changes in household expenditures and consumption patterns, especially those on health and care; and this can cause long-term damage to the household, and the economy in general. Considering that health is both a consumer and an investment commodity, any negative economic shock that leads to income and liquidity restrictions can endanger the health of the individual, and society by reducing health and treatment costs from the financial portfolio of the household. Accordingly, economic shock and its effects, will affect the allocation of resources on healthcare goods and services, vis a vis other goods and services, by re- changing healthcare costs. For this reason, the government should pay special attention to the health sector of society and improve the quality of the health care sector by investing extensively in this sector.

Recommended Citation

Izadi, Hamid Reza (2023) "The Effects of Economic Fluctuations on Health Care Expenditures of Iranian Households Using the DSGE Model," DLSU Business & Economics Review: Vol. 33: No. 1, Article 8.
DOI: https://doi.org/10.59588/2243-786X.1090
Available at: https://animorepository.dlsu.edu.ph/ber/vol33/iss1/8