Volume 18, Issue 3 (May - June 2019)                   Payesh 2019, 18(3): 221-230 | Back to browse issues page

XML Persian Abstract Print

Faculty of Management and Human Science, Chabahar Maritime University, Chabahar, Iran
Abstract:   (3272 Views)
Objective (s): One of the factors affecting life expectancy is health expenditure. Considering the different effects and outcomes of private and public health expenditures on health in Iran, the aim of this study was to investigate the causality between public and private health expenditures and life expectancy in the short and long term in Iran.
Methods: This descriptive-analytical study was carried out at the national level using Vector Error Correction Model for Iran. Data were obtained from annual time series for the 2000-2017, extracted from the World Bank website. The model and related tests were estimated in Eviews 10 software.
Results: The results showed that there was a two-way causality relationship between public expenditure and life expectancy in the short and long term. Also, private health expenditures had a causal relationship with life expectancy, but life expectancy had no causal impact on private health expenditures in the short and long term. The years of schooling and income had a positive impact and inflation had a negative impact on public and private health expenditures in Iran.
Conclusion: Public health expenditures had a causal effect on life expectancy. Therefore, policies for increasing investment in infrastructure and enhancing preventive health services, improving and promoting health technology and training specialist forces that are dependent on public expenditures are essential for promoting community health. Also, due to the effect of private health expenditure on life expectancy, in order to increase life expectancy and community health, supportive and insurance policies for low-income households are necessary to compensate for some of the health costs.
Full-Text [PDF 779 kb]   (1294 Downloads)    
type of study: Research | Subject: Medical
Received: 2019/05/4 | Accepted: 2019/07/6 | ePublished ahead of print: 2019/07/14 | Published: 2019/07/16

1. Shahraki M, Agheli L, Assari Arani A, Sadeqi H, Ghaderi S. The relationship between mother's socioeconomic status and child health. Journal of Research and Health 2018;8:143-51 [DOI:10.29252/jrh.8.2.143]
2. Taheri Bazkhaneh S, Karimzadeh M, Tahsili H. The study of socioeconomic factors affecting life expectancy in Iran. Economic Journal 2015;15:77-94 [In Persian]
3. Grossman M. On the Concept of Health Capital and the Demand for Health. Journal of Political Economy 1972;80:223-55 [DOI:10.1086/259880]
4. Asgari H, Badpa B. The effects of public and private health care expenditure on health status in Iran. Journal of Ilam University of Medical Sciences 2015;23:36-46 [In Persian]
5. Fayissa B, Gutema P. Estimating a health production function for Sub-Saharan Africa (SSA). Applied Economics 2005;37:155-64 [DOI:10.1080/00036840412331313521]
6. Samadpoor N, Emadzade M, Rangbar H, Azizi F. The Impact of Education on Health in Iran: A Production Function Approach. Journal of Research in Economic Modeling 2014;4:147-78[In Persian]
7. Makiyan SN, Taherpour E, Zangiabadi P. Health Expenditure & Life-expectancy in Islamic Countries: A Panel Data Approach. Scientific Journal Management System 2016;4:25-40 [In Persian]
8. Motaghi S. The determinants of life expectancy in Islamic Countries (Based on homogeneous income groups). Economics Research 2015;14:185-205 [In Persian]
9. Bayati M, Akbarian R, Kavosi Z, Sadraei Javaheri A, Amini Rarani M, Delavari S. Socioeconomic Determinants of Health in Western Pacific Region: A Panel Data Analysis. Yektaweb_Journals2013;12:111-30
10. Jahangard E, Alizadeh N. The Estimation of Effective Socio-Economic Factors on Health Production Function in Provinces of Iran. Nameh-Ye-Mofid 2010;15:85-106 [In Persian]
11. Shahraki M. Estimation of Supplementary Health Insurance Demand in Iranian Urban Household: Probit Model with Sample Selection. Iran Journal Health Insurence. 2019;2:10-6 [In Persian]
12. Shahraki M, Agheli L, Assari Arani A, Sadeghi H. The Effect of Mothers' Education and Employment on Children's Health. Jentashapir Journal Health Research 2016;7:1-7 [DOI:10.17795/jjhr-30977]
13. Ranabhat CL, Atkinson J, Park MB, Kim CB, Jakovljevic M. The Influence of Universal Health Coverage on Life Expectancy at Birth (LEAB) and Healthy Life Expectancy (HALE): A Multi-Country Cross-Sectional Study. Frontiers in pharmacology. 2018;9:960 [DOI:10.3389/fphar.2018.00960]
14. Rahman MM, Khanam R, Rahman M. Health care expenditure and health outcome nexus: new evidence from the SAARC-ASEAN region. Globalization and Health 2018;14:113 [DOI:10.1186/s12992-018-0430-1]
15. Rana RH, Alam K, Gow J. Development of a richer measure of health outcomes incorporating the impacts of income inequality, ethnic diversity, and ICT development on health. Globalization and health 2018;14:72 [DOI:10.1186/s12992-018-0385-2]
16. Anand S, Ravallion M. Human Development in Poor Countries: On the Role of Private Incomes and Public Services. Journal of Economic Perspectives 1993;7:133-50 [DOI:10.1257/jep.7.1.133]
17. Filmer D, Pritchett L. Child mortality and public spending on health: how much does money matter? The World Bank, 1997. Available from: https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-1864. [Accessed 18 February 2019]
18. Van Den Heuvel W, Olaroiu M. How Important Are Health Care Expenditures for Life Expectancy? A Comparative, European Analysis. Journal of the American Medical Directors Association. 2017;18:27 [DOI:10.1016/j.jamda.2016.11.027]
19. world bank. 2019. Available from: https://data.worldbank.org/.
20. Mahdavi A, Naderian MA. Investigation on the granger causality between human capital and economic growth in Iran. Economic Research Review 2010;38:287-309[In Persian]
21. Masih AMM, Masih R. Energy consumption, real income and temporal causality: results from a multi-country study based on cointegration and error-correction modelling techniques. Energy Economics 1996;18:165-83 [DOI:10.1016/0140-9883(96)00009-6]
22. Johansen S. Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control 1988;12:231-54 [DOI:10.1016/0165-1889(88)90041-3]
23. Johansen S. Determination of Cointegration Rank in the Presence of a Linear Trend. Oxford Bulletin of Economics and Statistics 1992;54:383-97 [DOI:10.1111/j.1468-0084.1992.tb00008.x]
24. Imoughele L, Ismaila M. Determinants of public healthcare expenditure in Nigeria: an error correction mechanism approach. Internat Journal of Business and Social Science 2013; 4:220-332
25. Sadeghi SK, Mohammadi Khaneghahi R. The impact of health care expenditure on health indicators: an empirical analysis in middle income countries. Payesh 2015;14:7-14 [In Persian]
26. Raeesi P, Harati-Khalilabad T, Rezapour A, Azari S, Javan-Noughabi J. Effects of private and public health expenditure on health outcomes among countries with different health care systems: 2000 and 2014. Medical journal of the Islamic Republic of Iran 2018;32:35 [DOI:10.14196/mjiri.32.35]
27. Deluna R, Peralta T. Public Health Expenditures, Income and Health Outcomes in the Philippines. MPRA Paper 2014;60115:1-21
28. Ogungbenle S, Olawumi O, Obasuyi F. Life Expectancy, Public Health Spending and Economic Growth in Nigeria: A Vector Autoregressive (Var) Model. European Scientific Journal 2013;9:1-26
29. Sağlam BB. Private Health Care Versus Public Health Care: Complements or Substitutes. 18th annual Meeting of the Association for Public Economic Theory 10-13 Jul 2017; Paris, 2017. Availeble from: https://pet2017paris2.sciencesconf.org/142000/document. [Accessed 25 February 2018]
30. Cutler DM, Lleras-Muney A. Education and Health: Insights from International Comparisons. NBER Working Paper No. 17738. 2012. Availeble from:https://www.nber.org/papers/w17738. [Accessed 25 February 2018] [DOI:10.3386/w17738]
31. Kemptner D, Jürges H, Reinhold S. Changes in compulsory schooling and the causal effect of education on health: Evidence from Germany. Journal of Health Economics 2011;30:340-54 [DOI:10.1016/j.jhealeco.2011.01.004]
32. Powdthavee N. Does Education Reduce the Risk of Hypertension? Estimating the Biomarker Effect of Compulsory Schooling in England. Journal of Human Capital 2010;4:173-202 [DOI:10.1086/657020]