Monetary and Fiscal Shocks

The healthcare system holds a significance role in economic growth and development of any country. For assessing and evaluating the healthcare system, the relative prices of this sector are one of the crucial indicator. This study employs a stochastic dynamic general equilibrium model to examine the impacts of monetary, fiscal and technology shocks on the healthcare sector in the Iranian economy. The results indicate that positive monetary shock has direct impact on general inflation but tends to be reduced the relative prices of the health sector. Thus, the positive impact of this shock on the production of non-health goods is greater than the health sector. Also, positive shocks related to oil income, government health sector expenditures, and technology increase the production of health and non-health goods and have an inverse effect on inflation of this sector.