Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

---

Background: Examining the government’s attitude towards the allocation of financial slack to the health sector at the time of positive and negative changes in the oil price in terms of public health policy is of great importance. Therefore, the aim of this study was to investigate the asymmetric consequences of oil price volatilities on the government expenditure in the health sector during the years 1997 to 2014 in Iran.Methods: To examine the asymmetric effects of oil price volatilities on government expenditure in the health sector, first, the positive and negative volatilities in the oil price was measured using the generalized autoregressive conditional heteroskedasticity (GARCH) model. Then, by employing the Bayesian econometrics and the response functions, the effects of each of the positive and negative volatilities on the government expenditure were examined.Findings: The results revealed that both at the time of the rise and drop of the oil price, the government has increased the expenditure in the health sector and this indicates the important position of the health sector as one of the important human development indexes in public policies regarding resource allocation in the aforesaid era.Conclusion: Oil price volatilities act as one of the agents causing instability in supplying the government income resources in the budgets. As a consequence, supplying the expenses of the health sector, as one of the influential factors on the human development indexes, by the government might experience instabilities. For this purpose, this study revealed that the government in the aforesaid era has attempted not to be instable in allocating resources to this sector.

Full-Text [PDF 662 kb]   (426 Downloads)    

Add your comments about this article : Your username or Email:

---