Dissertation for MA degree
Field: Business Administration
Inclination: Insurance
Abstract:
One of the solutions for governments to reduce poverty has been to establish a social security system. The present research is devoted to the investigation of the relationship between the medical expenses paid by the people or the people's share of these expenses and oil revenues and economic growth between 1370-1391 using the ordinary least squares method and the use of eviwes software. The results of the estimation of the research models show that the increase in oil revenues and national production has not had a significant effect on the improvement of the health situation in Iran. Keywords: inflation, oil revenues, medical expenses, OLS. For whatever reason inflation occurs, if it is higher than the acceptable and accepted level in the long-term economic plan of any country, it affects the financial relations between individuals and companies. The insurance industry is also not immune from the various effects of inflation due to its wide connection with other economic and social sectors of the country. Investigating the effect of inflation on the costs paid by the insured is important from the point of view that if the share of the medical expenses of the insured increases along with inflation, it will reduce their welfare. And if, in this situation, governments and economic institutions do not neutralize the negative effect of inflation on the real purchasing power of insured people by applying some appropriate methods, the problems of low-income groups will increase. Therefore, it is very important to examine the appropriate solutions to boost the demand for life insurance in inflationary conditions. One of the major problems that human societies have faced throughout history has been the economic inequality prevailing in those societies, which manifests itself in the form of poverty for the majority of people. Even today, the problem of poverty and inequality is considered among the acute issues, in such a way that according to the available information, about eight hundred million people of the world spend the night hungry until the morning.[1] Therefore, the countries of the world have included the reduction of poverty and inequality among the main goals of their social-economic policies.
In the last two decades, following the increase in social and economic costs caused by economic adjustment programs, the number of poor people has increased, therefore, there is no other way to achieve the above goals than establishing social security. As the main motto of the International Social Security Association is: "Sustainable peace without social justice and social justice without social security will not be possible." (Panahi Bahram: 1376)
This research examines the relationship between a number of macro variables and household medical expenses in Iran during the period of 1370-1390 as follows: First, some general information regarding the literature on the subject is stated, and then the history of studies and researches conducted in this field is reviewed. In the third part, the performance of the research method and the method of statistical analysis are examined. The estimation of the model is done by the convergence method in the fourth section. Finally, in the final part, conclusions and suggestions are presented.
In order to understand this issue, we are going to look at the relationship between inflation and medical expenses of households in Iran. In this chapter, the generalities of the research will be presented. In other words, inflation is the increasing and irregular process of price increase in the economy. Although, based on different theories, different definitions of inflation are presented; But all of them point to the increasing and irregular trend of price increases. The modern concept of inflation was popularized in the 19th century. Before that, there was another concept of inflation, which was used to show the increase in the volume of bills that cannot be converted into gold. With today's definition, the inflation rate can be considered to indicate an increase or decrease or stability in the consumer price of goods and services. To measure this index, usually in weekly, monthly and yearly intervals, the prices of all kinds of goods and services are measured and announced publicly in every country. The goods and services whose prices are calculated in the inflation rate are usually considered essential goods and services for people's lives; The collection of these goods is called the "inflation rate measuring basket of goods and services".This basket of goods and services, which is known as the basic basket and index of goods, is reviewed once a year. In Iran, the compilation of this basket started in 1338 and was last evaluated and calculated in 1383 by the Central Bank of the Islamic Republic of Iran, considering 359 items of goods and services in 75 selected cities of the country. In order to accurately measure inflation, governments should calculate the country's weekly inflation rate by monitoring weekly changes in the prices of goods and services that are included in the inflation measurement basket. The average inflation rate every four weeks in a month is called the monthly inflation rate, and the average inflation rate every 12 months in a year is the average annual inflation rate. Keynesian point of view mentions two main reasons for inflation: decrease in total supply or increase in total demand (Monetarist). In other words, inflation is not proportional to the amount of money in circulation with the supply of services and goods. Almost all economists agree that long-term stable inflation has no root other than money supply and increased liquidity. The higher the inflation rate, the lower the purchasing power of a currency unit.
Inflation is one of the phenomena that can have positive and negative effects and consequences, and its most important effect is distributional; In a way that benefits the high-income groups and harms the poor and low-income groups. In other words, inflation harms people with fixed monetary incomes and reduces their purchasing power, and on the other hand, it benefits most of those who have variable monetary incomes. In one of the reports of the Majlis Research Center, it is also stated that inflation has also increased the public expenses of the government and as a result, it forces the government to earn more money or borrow from the central bank, which in both cases inflicts irreparable blows on the country's economy. This report goes on to plan solutions to combat inflation and emphasizes that solving the problem of inflation in the country is not a very complicated task and it is enough to remove the roots of inflation, which can also be identified. Insurance includes the following: life insurance, body parts insurance, fire insurance, theft insurance, etc.
In the simplest definition, insurance; It is a way to transfer risk. In the definition of Article 1 of the Iranian Insurance Law: Insurance is a contract whereby one party (insurer) undertakes to compensate the damage caused to him or pay a certain amount in exchange for payment of money or funds from the other party (insurer) in the event of an accident. The obligee is the insurer, the party to the obligation is the insurer, and the amount that the insurer pays to the insurer is the insurance premium, and what is insured is the subject of the insurance.
Insurance, as one of the important and essential tools in today's civilized world, plays a significant role in reducing risk and providing financial and mental security. Today, various types of insurance have been formed to reduce the many risks that people face. The questions that are related to the health status and other macro variables are whether variables such as economic growth and inflation have an effect on increasing the share of the costs paid by the insured or not? In other words, after inflation or economic growth, do people with a fixed income pay more or less of their income to compensate for medical expenses? The present research seeks to find an answer to this question. 3-1 The importance and necessity of doing Research:
Knowing the effect of changes in economic growth income variables and inflation rate on medical expenses is of particular importance. The present research is considered a new work in terms of the subject under investigation. This research is intended for people who are researchers and students in the fields of management, as well as companies. Also, it is necessary to investigate the effect of economic growth income and inflation rate on the medical expenses of households to determine the plans and strategies of the public sector.