Abstract

The views on health have gained a broader perspective today, so that according to these views, in addition to economic factors, non-economic factors (political, cultural and social ones) also affect health expenditures. Therefore, in this study the effect of 9 economic and non-economic indicators (indicators of good governance and resources curse) on the level of health expenditures in different income classes was studied using the XLSTAT software. The results of this study revealed that, indicators of inflation and employment (economic factors) most accounted for variations of health expenditures in different income classes. Also, it was revealed that economic and non- economic factors in higher and lower income deciles increased healthcare spending and in the middle deciles it had a negative impact on this expenditure; however, according to the authors, the positive nature of effect of factors on upon low and high deciles is different. From the view of researchers, in the lower deciles increased spending was generally due health problems (essential goods), but in higher income deciles increase in expenses was generally due to increased spending on health and beauty (luxury). According to the results, it was observed that variables of employment, economic growth and political stability in different income classes had a negative impact on health expenditures and other indicators had positive impact on health spending in income deciles. In other words, based on the results, real variables (growth and employment) had more effect than monetary variables (inflation) and non-economic variables (indicators of good governance and resource curse) on reducing health care costs among different income classes. DOI: 10.5901/mjss.2016.v7n4S2p203

Highlights

  • Until the late 1980s, the common understanding about the relationship between natural resource abundance and economic development was that the abundance of natural resources was an advantage for development

  • Several studies have shown the relationship between different factors such as age, education, income level and even the city's location etc. and health level; given the special conditions of Iran, it was tried to incorporate the effect of good governance and resource curse as health indicators alongside economic indicators to health function; so health can be a function of economic and noneconomic factors

  • To accommodate the special circumstances of health in oil-producing countries, in addition to economic indicators considered by Grossman, good governance indices and resource curse indices were considered in this model so that these indices could provide a more realistic explanation of the health status of these countries

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Summary

Introduction

Until the late 1980s, the common understanding about the relationship between natural resource abundance and economic development was that the abundance of natural resources was an advantage for development. Since the late 1980s, many studies challenged this traditional understanding These studies have shown that the abundance of natural resources (or at least certain types of natural resources) increased the possibility that countries experience negative economic, political and social effects such as poor economic performance, low levels of democracy, civil war and the government's dependency on a particular source in order to meet its expenses and lack of consistent tax systems. Health level; given the special conditions of Iran (poor management at the macro level and the dependence of economic growth on oil revenues), it was tried to incorporate the effect of good governance and resource curse as health indicators alongside economic indicators to health function; so health can be a function of economic and noneconomic factors.

Economic factors
Theoretical Framework
Domestic Literature
Foreign Literature
Methodology
Findings
Model Estimation
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