Volume 6, Issue 4 (10-2022)
EBHPME 2022, 6(4): 262-272 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Izadi H. The Effects of Policy Change Regarding Health Expenditures on Households Behavior. EBHPME 2022; 6 (4) :262-272
URL: http://jebhpme.ssu.ac.ir/article-1-409-en.html
URL: http://jebhpme.ssu.ac.ir/article-1-409-en.html
Department of Economics, Faculty of Management and Humanities, Chabahar Maritime University, Chabahar, Iran , izadi@cmu.ac.ir
Abstract: (819 Views)
Background: In order to assess households' socioeconomic level in society, policymakers and government planners nowadays pay close attention to families' access to health services. They calculate the percentage of a household's bundle of consumer goods and services. In this regard, the current study examines and analyzes the household's behavior as a result of the government's policies in changing and determining the share of the household's health expenses from its total consumption expenses. This is to ensure that society is kept at a minimum level of health.
Methods: In order to accurately execute health policies and change household behavior, this research studies the share and access of Iranian households to health products and services. The author used a Dynamic Stochastic General Equilibrium model through quarterly data from 1997 to 2020.
Results: Findings show that as this share increased, other items' consumption and utility decreased, which ultimately led to a fall in society's total utility according to the definition that utility is a term used as a measure of pleasure or happiness resulting from consuming goods and services.
Conclusion: The government and policymakers need to bear some of health expenditures and provide financial support to households until it reaches the desired level. This is to prevent a significant decrease in the level of total utility in society. This decrease is brought on by people's dissatisfaction with spending a larger portion of their expenses on health goods and services.
Methods: In order to accurately execute health policies and change household behavior, this research studies the share and access of Iranian households to health products and services. The author used a Dynamic Stochastic General Equilibrium model through quarterly data from 1997 to 2020.
Results: Findings show that as this share increased, other items' consumption and utility decreased, which ultimately led to a fall in society's total utility according to the definition that utility is a term used as a measure of pleasure or happiness resulting from consuming goods and services.
Conclusion: The government and policymakers need to bear some of health expenditures and provide financial support to households until it reaches the desired level. This is to prevent a significant decrease in the level of total utility in society. This decrease is brought on by people's dissatisfaction with spending a larger portion of their expenses on health goods and services.
Type of Study: Original article |
Subject:
Health Economics
Received: 2022/07/20 | Accepted: 2022/10/26 | Published: 2022/12/31
Received: 2022/07/20 | Accepted: 2022/10/26 | Published: 2022/12/31
References
1. Aziz A, Permana I, Alfarisi M. Factors affecting household consumption pattern. Electronic Journal. 2018; 10: 140-56.
2. Rous JJ, Hotchkiss DR. Estimation of the determinants of household health care expenditures in Nepal with controls for endogenous illness and provider choice. Health Economics. 2003; 12(6): 431-51. [DOI: 10.1002/hec.727]
3. Zare H, Trujillo AJ, Leidman E, Buttorff Ch. Income elasticity of health expenditures in Iran. Health Policy Plan. 2013; 28(6): 665-79. [DOI: 10.1093/heapol/czs106]
4. Sanwald A, Theurl E. Out-of-pocket payments in the Austrian healthcare system - a distributional analysis. Int J Equity Health. 2015; 14: 94. [DOI: 10.1186/s12939-015-0230-7]
5. Osuji O. Effect of inflation on household final consumption expenditure in Nigeria. Journal of Economics and Development Studies. 2020; 8(1)10: 104-111. [DOI: 10.15640/jeds.v8n1a8]
6. Zeynalova Z, Mammadli M. Analysis of the economic factors affecting household consumption expenditures in Azerbaijan. Journal of Critical Reviews. 2020; 7(7): 241-8. [DOI: 10.31838/jcr.07.07.40]
7. Long JB, Plosser Charles I. Real business cycles. Journal of Political Economy. 1983; 91(1): 39–69.
8. Locky Liu X, Pagan AR, Robinson T. Critically assessing estimated DSGE models: A case study of a multi-sector model. Economic Record. 2018; 94(5): 349-71. [DOI: 10.1111/1475-4932.12425]
9. Clarida R, Jordi G, Mark G. The science of monetary policy: a new Keynesian perspective. Journal of Economic Literature. 1999; 37(4): 1661–707. [DOI: 10.1257/jel.37.4.1661]
10. Gali J. Monetary policy, inflation and the business cycle: An introduction to the new Keynesian framework and its applications. New Jersy: Princeton University Press; 2007.
11. Grossman M. On the concept of health capital and the demand for health. Journal of Political Economy.1972; 80(2): 223-55.
12. Gerdham U, Lothgren M. New panel results on cointegration of international health expenditure and GDP. Applied Economics. 2000; 34(13): 1679-86. [DOI: 10.1080/00036840110116397.]
13. Getzen ThE. Healthcare is an individual necessity and a national luxury: Applying multilevel decision models to the analysis of health care expenditures. Journal of Health Economics. 2000; 19(2): 259-70. [DOI: 10.1016/s0167-6296(99)00032-6]
14. Guisan MC, Arranz M. Econometric models of private and public health expenditure in oecd countries, 1970-96. Applied Econometrics and International Development. 2003; 3(3): 49-60.
15. Matsaganis M, Mitrakos Th, Tsakloglou P. Modelling health expenditure at the household level in greece. The European Journal of Health Economics. 2009; 10(3): 329-36. [DOI: 10.1007/s10198-008-0137-y]
16. Mullahy J. Econometric modeling of health care costs and expenditures: A survey of analytical issues and related policy considerations. Medical Care. 2009; 47(7): 104-8. [DOI: 10.1097/MLR.0b013e31819c9593]
17. Wang KM. Health care expenditure and economic growth: Quantile panel-type analysis. Economic Modelling. 2011; 28(4): 1536–49. [DOI: 10.1016/j.econmod.2011.02.008]
18. Malik AM, Azam Syed ShI. Socio-economic determinants of household out-of-pocket payments on healthcare in Pakistan. International Journal for Equity in Health. 2012; 11: 51. [DOI: 10.1186/1475-9276-11-51]
19. Lee W, Jiang L, Phillips ChD, Ohsfeldt RL. Rural-urban differences in health care expenditures: Empirical data from us households. Advances in Public Health. 2014; 43: 57-80. [DOI: 10.1155/2014/435780]
20. Brown S, Hole AR, Kilic D. Out-of-pocket health care expenditure in turkey: Analysis of the 2003–2008 household budget surveys. Economic Modelling. 2014; 41: 211-8. [DOI: 10.1016/j. econmod.2014.05.012]
21. Smets F, Wouters R. An estimated dynamic stochastic general equilibrium model of the euro area. Journal of the European Economic Association. 2003; 1(5): 1123-75. [DOI: 10.1162/ 154247603770383415]
22. Izadi HR. Investigation of the role of change in utility function components and its effect on smooth the dynamic movement path of model variables. Studies In Business and Economics. 2022; 17(1): 73-84. [DOI: 10.2478/sbe-2022-0005]
23. Izadi HR, Marzban H. The role of productivity growth changes in determining optimal monetary and fiscal policies from the Ramsey problem. Quarterly Journal of Quantitative Economics. 2016; 16(2): 37-71. [In Persian]
24. Izadi HR. The role of tendency of government preference in an optimal fiscal policy model in the presence of agent heterogeneity in a DSGE framework. Quarterly Journal of Economical Modelling. 2019; 12(44): 73-96. [In Persian]
25. Izadi HR. Investigating the role of financial sanctions in utility function and their impact on household behavior. DLSU Business & Economics Review. 2021; 31(1): 132-141.
26. Izadi HR, Sayareh, M. Investigating the role of labor division into internal and external sectors in the Iranian economy within the framework of dynamic stochastic general equilibrium model. Journal of Econometric Modelling. 2019; 4(3): 87-110. [In Persian] [DOI: 10.22075/jem.2019.18181.1339]
27. Izadi HR, Marzban H. Designing, investigation and comparison of the factors of stationarity of dynamic stochastic general equilibrium models in Iran economy. Quarterly Journal of Economic Research and Policies. 2017; 24(80): 195–216. [In Persian]
Send email to the article author
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
