The Effect of a Positive Health Investment Shock on Economic Growth and Environmental Quality in a New Keynesian Model
摘要
This study examines the effects of a positive shock of health investment productivity on Iran's economic growth and environmental quality from January 1990 to June 2022. A new Keynesian model and Bayesian approach have been used in this regard. The results showed that the effects of health investment productivity shocks are short term. In response to this shock, the status of health sector variables improves, but it returns to its previous stable state in 15 seasons. On the other hand, increasing exercise time will decrease the working time and, subsequently, the productivity of the capital. Due to the decrease in labor and capital income, consumption, investment, production, and economic growth will face a short-term decrease. In addition, the temporary reduction of production increases the quality of the environment for less than five seasons. Considering that using renewable energies instead of fossil fuels and encouraging people to use public transport are among the policies that can effectively reduce air pollution and improve environmental quality, it is recommended that we move toward energy-efficient industries and use cleaner technologies and fuels.