The impact of monetary and fiscal policies on the health sector and Turkey review

Social welfare, a phenomenon that will never fall from the agenda even though its impact has diminished with the effect of globalization, has found its place in the politics of the state with the second world war and has been accepted as one of the most basic steps to become a modern civilization. The most basic characteristics of being a social state is that it can be regulatory comma interventionist and income redistributor. Health expenditures are also a requirement of the social welfare state and are important expenditure items of almost all countries. In this study, the effects of monetary and fiscal policies on the health sector aims to examine the example of Turkey. In the study, which uses annual data between 1999 and 2018, cointegration analysis was applied econometricly in order to reveal the effect of monetary and fiscal policy on health sector by taking into consideration other studies in the literature. In this study, two different models are used to determine the effect of monetary and fiscal policy in order to examine the impact of monetary and fiscal policy on the health sector. Firstly, cointegration analysis was performed by means of the established models, and then the relationship between variables error correction model (VECM) and Impact-Response analysis were applied through VAR model. As a result of the research, it is seen that fiscal policies are more effective and sensitive policies on health sector compared to monetary policies. Key Words: Social Welfare Government, Health Expenses, Health Expenses in Turkey