Social accounting matrix and the effects of economic reform on health price index and household expenditures: Evidence from Iran

Authors

  • Ali Sarabi Asiabar Health Management and Economics Research Center, Iran University of Medical Sciences, Tehran, Iran.
  • Amir Hashemi Meshkini Department of Pharmacoeconomics and Pharmaceutical Administration, Faculty of Pharmacy, Tehran University of Medical Sciences, Tehran, Iran.
  • Aziz Rezapour Health Management and Economics Research Center, Iran University of Medical Sciences, Tehran, Iran.
  • Behzad Najafi Iranian center of Excellence in health management, Department of health services management, School of management and medical informatics, Tabriz University of medical sciences, Tabriz, Iran.
  • Ehsan Sanati Department of Pharmacoeconomics and Pharmaceutical Administration, Faculty of Pharmacy, Tehran University of Medical Sciences, Tehran, Iran.
  • Farhad Lotfi Health Human Resources Research Center, Department of Health Economics, School of Management & Medical Informatics, Shiraz University of Medical Sciences, Shiraz, Iran.
  • Iman Mirian Health Human Resources Research Center, Department of Health Economics, School of Management & Medical Informatics, Shiraz University of Medical Sciences, Shiraz, Iran.
  • Khosro Keshavarz Health Human Resources Research Center, Department of Health Economics, School of Management & Medical Informatics, Shiraz University of Medical Sciences, Shiraz, Iran.
  • Masoud Abolhallaj Assistant Professor in Health Services Management, Budgeting and performance Monitoring Center, Ministry of Health and Medical Education, Tehran, Iran.
  • Shekoofeh Nikfar Department of Pharmacoeconomics and Pharmaceutical Administration, Faculty of Pharmacy, Tehran University of Medical Sciences, Tehran, Iran.
  • Yaghob Andayesh Department of Economics, Shahid Chamran University of Ahvaz, Ahvaz, Iran.
Abstract:

Background: Socioeconomic indicators are the main factors that affect health outcome. Health price index (HPI) and households living costs (HLC) are affected by economic reform. This study aimed at examining the effect of subsidy targeting plan (STP) on HPI and HLC.    Methods: The social accounting matrix was used to study the direct and indirect effects of STP. We chose 11 health related goods and services including insurance, compulsory social security services, hospital services, medical and dental services, other human health services, veterinary services, social services, environmental health services, laundry& cleaning and dyeing services, cosmetic and physical health services, and pharmaceutical products in the social accounting matrix to examine the health price index. Data were analyzed by the I-O&SAM software.    Results: Due to the subsidy release on energy, water, and bread prices, we found that (i) health related goods and services groups’ price index rose between 33.43% and 77.3%, (ii) the living cost index of urban households increased between 48.75% and 58.21%, and (iii) the living cost index of rural households grew between 53.51% and 68.23%. The results demonstrated that the elimination of subsidy would have negative effects on health subdivision and households’ costs such that subsidy elimination increased the health prices index and the household living costs, especially among low-income families. The STP had considerable effects on health subdivision price index.    Conclusion: The elimination or reduction of energy carriers and basic commodities subsidies have changed health price and households living cost index. Therefore, the policymakers should consider controlling the price of health sectors, price fluctuations and shocks.    

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Social accounting matrix and the effects of economic reform on health price index and household expenditures: Evidence from Iran

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Journal title

volume 31  issue 1

pages  391- 395

publication date 2017-01

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