Editor in Chief: Moh. Reza Huwaida Sunday, August 19th, 2018

Health Economics

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Health Economics

Nowadays, we can number a lot various fields for economics. For example political economy, energy economy, agriculture economy, and so on…one of so important branches of them is health economy.
Regarding that, today health security and education is one of the most important economic obligations for embodiment a healthy, effective human source. Various countries at least set provision of hygienic and educational minimums as their most important programs for development. Developing countries, through lengthy years, hurt from lack of satisfactory life situations. Low indexes in hygienic improvement and its related costs in underdevelopment countries have caused dire influences on development process in those countries. Hygienic costs through improving heath indexes, increasing in human recourse stock has its pleasant effects on economic growth in these countries.
In this study we scrutinize the relations between health or medical situations with economic parameters; consumptions and productions, and we manipulate economic analysis and methods to figure out this connection and his effects and influences on it. As an example they’re studying effects of inflation rate on health or on smoking or on surgery’s rate.
Kenneth Arrow, in his essay in 1963, illustrated good distinction between health and other commodities; as a result, from that time on, we recognize health economics, as a scientific spontaneous discipline among other economics’ realms.
There are some important factors to distinct between health and other commodities like huge governmental interferences, information asymmetry, externalities, and presence of third person and his role in consumption (physician) and so on, these factors cause this kind of separation between health and other goods and commodities. As other commodities we discuss its demanding and supplying of health, micro and macro analyze in cure level and its market equilibrium, planning, budgeting…
Demanding of cure and hygiene is a derived demand of health; hygienic care will be demanded as an instrument and a breach to achieve a bigger share from health capital. Health demanding is unlike most other commodities because people want it for consumption and also for production.
Grossman’s health production in 1972 has been so effective on these studies, this model assume that every person here is a producer and consumer at the same time, with time passing and no investment on health it will be shrunk. In Grossman’s model, investment optimum level in health is occurred when marginal cost is equal with marginal revenue. Trough the time health will be reduced; it shows interest rate with (r).
Marginal revenue of health capital is rate of return in market sections. In this model optimum level of health capital is influenced by factors like age, wages, and education levels.
In most researches has been analyzed 5 health market:
1.             healthcare financing market
2.             Market of nurses and medics’ services
3.             Market of cure services
4.             Market of factors and institutions
5.             Market of professional education
Although hypothesis of educational books’ models of economic markets noticeably is so practical in hygienic and cure markets but, however there is important perversities also.
In our country, Afghanistan, I couldn’t find any remarkable essay or book on this subject but we can look at yearly budget to perceive healthcare costs was so wavy and it s depend on Afghanistan economical, political situation without any long term plan. But there is also some expenditure beyond national budget, expended by feigners’ NGOs.
There is one knowledgeable research from Chicago University that shows 30 percentage of England economic growth throughout 2000 years can be related to improvement in nutrition. Ample nutrition provides enough energy for their working and influence on partnership of workforce. Improvement in healthcare can increase quantity and quality of work force (fugal, 1994). Improvement in health, not only, reduces from time consuming in diseases, but also, increase in work quality.
Health and hygiene, from several aspects, has this ability to influence growth and development, for a country the first indicator to mention is; better efficiency in comparing with others. Healthy work force can use from his physical ability more and better than others.  And he has more creative and prepare mind. Beside this direct effect, hygienic and healthcare improvement in human recourse, leads to better motivation for education and achieving better skills. Because better hygienic and health situation not only can raise attraction of educational investments and opportunities, but also, with learning ability expansion, make people more talented for getting along with higher education level. And it also leads to lessen mortality rate and lengthen life expectancy for societies’ people that this matter, itself, encourage people for more saving rates and capital accumulation.

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