Asymmetric Effects of Income Inequality and New Technologies on Public Health Indicators with Emphasis on Research and Development Expenditures
Keywords:
Income inequality, New technologies, Public health index, Research and development spending, Inflation rate JEL classification: C24, E52, G12Abstract
Objective: This study aimed to investigate the asymmetric effects of income inequality, new technologies, and research and development (R&D) expenditures on public health and to evaluate the differential impacts of positive and negative shocks in these variables over the short and long run.
Methodology: This applied descriptive-analytical study employed annual data from 1990–2023. The Nonlinear Autoregressive Distributed Lag (NARDL) model was used to estimate asymmetric relationships. Public health was measured through life expectancy, while explanatory variables included income inequality, information and communication technology development, R&D expenditures, GDP per capita, inflation, population, education, and gross fixed capital formation.
Findings: The Wald test confirmed the presence of asymmetric effects. In the short run, positive shocks in R&D expenditures improved public health, whereas negative shocks reduced it. Positive shocks in income inequality adversely affected public health, while negative shocks in inequality improved health outcomes. New technologies also exhibited asymmetric effects, with positive shocks enhancing public health and negative shocks diminishing it. The error-correction coefficient was negative and statistically significant, indicating convergence toward long-run equilibrium. Long-run estimates revealed that R&D expenditures, technological development, GDP per capita, education, and capital formation positively influenced public health, whereas income inequality, inflation, unemployment, and population exerted negative effects.
Conclusion: The findings suggest that strengthening R&D investment and promoting technological advancement can significantly enhance public health outcomes. Conversely, rising income inequality undermines population health. Therefore, policies aimed at reducing inequality while supporting innovation and technological development are essential for improving long-term public health performance.
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