The Effects of Business Cycles on the Mortality Rate in Provinces of Iran

Economic growth and public health improvement are the key issues in social development and policy-making processes. Economic downturns and upturns affect the lifestyle of people as well as their health status and health expenditure. The studies ever done indicate that the relationship between health and economic conditions is vague and, in different situations, contradictory. Thus, concerns about the impact of economic conditions on the public health seem to be natural.
In this study, the relationship between business cycles and mortality rate, as an indicator of health status, in provinces of Iran is investigated using panel data during 2002-2010. Therefore, GDP per capita is used as an indicator of economic activity (or business cycles). Furthermore, references are made to the interactive effects of unemployment and the level of economic activity. Urbanization and air pollution are the other complementary indicators to explain the mortality rate.
The results show that the relationship between mortality and GDP per capita is negative. The coefficient of the interactive effects of unemployment and the level of economic activity is also negative, meaning that, as GDP rises, the relationship between unemployment and mortality becomes more negative (i.e. more unemployment, less mortality). Also, mortality is a positive function of urbanization and air pollution.