Investigating the relationship between financial depth, macroeconomic fluctuations and health costs with economic growth, taking into account the threshold effects of the shadow economy.

Subject Areas : -Health economy

seyed nourdin hodaei ¹ , مرجان marjan دامن کشیدهdamankeshideh ² , Manijeh Hadinejad ³ , Shahriyar Nassabian ⁴

1 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2024-10-14 Accepted : 2024-11-16 Published : 2024-11-19

Keywords: shadow economy, financial depth, banking policies, economic fluctuations, economic growth, health costs in society, threshold approach,

Abstract :

Introduction: The health financing system and health costs in society is "the process of collecting, aggregating and managing financial resources in order to purchase health services". Iran's health financing system is facing challenges. Providing, maintaining and promoting health in society; Responding to their clinical and non-clinical expectations and supporting them financially against catastrophic health costs is one of the general goals of the health system. Increasing the health budget of the government and using it correctly in the health system is considered an investment that will show its positive effects years later. Improving people's health will lead to an increase in their healthy working days and more work and production and paying more taxes to the government. In the present study, the relationship between financial depth, macroeconomic fluctuations and health costs with economic growth has been investigated, considering the threshold effects of the shadow economy.

Methods: In this article, the threshold effects of the shadow economy will be investigated on the relationship between financial depth, health costs and macroeconomic fluctuations with economic growth by applying Star's threshold regime change models. In Iran during the time period of 1370-1401 and using the soft transfer threshold approach (STAR) was discussed.

Results: The estimation results of the nonlinear part of the model (second regime) show that the shadow economy variables, exchange rate fluctuations, inflation, government spending in the health sector, liquidity growth and nominal interest rate have a negative relationship with the economic growth index. so that the variables of the shadow economy, exchange rate, inflation, government spending, liquidity growth and nominal interest rate respectively lead to a decrease; 21%, 17%, 7%, 10%, 5% and 3% economic growth.

Conclusion: crisis management related to exchange rate fluctuations, inflation and shadow economy is one of the most important things done by the country. On the other hand, the main channel of influencing the financial depth is done by increasing the efficiency of investment and monetary policies. Therefore, the way of financial market liberalization, weak management of the financial system and the lack of formation of coherent financial markets and the benefit of regulations in the country can be seen as the reasons for reducing the efficiency of investment through the non-optimal allocation of resources in the country. Therefore, it is necessary for the country, while improving the level of security of the relevant platforms, to complete and revise the existing laws and regulations in the field of banking, economics and electronic banking, etc., with the approach of adapting the aforementioned laws to international regulations.

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