ی
ehsan taheri; Hossein Sadeghi; lotfali agheli; alireza naseri
Abstract
Reduction in the access to health care services and spread of disease can have a negative effects on the economic growth and welfare of the community by reducing the labor force participation. Increasing government health expenditures is one of the ways to overcome these problems. However, implementing ...
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Reduction in the access to health care services and spread of disease can have a negative effects on the economic growth and welfare of the community by reducing the labor force participation. Increasing government health expenditures is one of the ways to overcome these problems. However, implementing this policy, along with its positive effects, will have a negative impact on the effective labor supply of other sectors. Therefore, the purpose of this study is to investigate these effects using a computable general equilibrium model based on the 2011 social accounting matrix of Iran. The results showed that illness, reduced welfare and real GDP, but increasing government health expenditures, increased welfare in the short run and long run. Although effects on real GDP depend on the closure of labor market, so that in the situation of immobile labor force of the health sector, it is decreased, but with full labor mobility, it increased. So because of the positive welfare effects of government health expenditures, it is suggested that government still more invest in this sector. Also to reducing the costs and preventing the real GDP reduction it is necessary to provide the ground to increase labor force in the health sector in such a way as to the labor supply of other activities doesn’t decrease.
