long-term Relationship Between Health, Education and Estimate The Technical Efficiency Of Health production function (The Case Study:Selected OIC counterise)

Health is considered nowadays as one of the most important factor in Human Development Index. Increase in mortality rate due to non-communicable diseases and increase in health care costs, caused by these diseases has challenged the health systems in most nations, particularly the developing countries which are faced severe resource shortage. This has led the policy makers to focus on “education”, as an effective instrument to improve the public health efficiency. The main objective of our study is to investigate the long-term relationship between health and education among selected OIC countries during the period (1998- 2013). In this regard, based on the Grossman (1972) model, a health production function is defined. Using a co-integration panel data technique, we estimated the model. Subsequently, using the estimated coefficients of the long-run relationship and the random effect model, for selected countries, the technical efficiency of health production was calculated. The results shows that there is a long-term equilibrium relationship between health and education. the results of the calculation of technical efficiency, in various countries, showed that those countries with higher literacy rates, used efficiently the inputs in health production.