Abstract
Background. Given the importance of improving health as a major social goal, and the significance of the exchange rate as one of the key policy variables in open economies, the present study aimed to investigate the impact of dollar price and its volatility on life expectancy in Iran.
Methods. The method employed in this study is causal-analytical and practical research design. The statistics and data related to the variables used in the study were extracted from the Central Bank of Iran's Economic Time Series Database and the World Development Indicators (WDI). The Econometric software used is Eviews version 13 and the econometric methods applied include the Exponential GARCH method and the Johansen-Juselius approach. The data used in the study are quarterly time series, covering the period from the first quarter of 2001 to the fourth quarter of 2023, and the geographical scope of the research is Iran.
Results. The research findings indicate that, in the long run, a one percent increase in both the dollar price and the dollar price volatility leads to a decrease of 0.02 percent and 0.17 percent in life expectancy, respectively.
Conclusion. Based on the findings of the study, it is recommended that economic policymakers take should prioritize actions to increase life expectancy by creating a deep and competitive foreign exchange market and implementing appropriate exchange rate policies aimed at reducing the dollar price and stabilizing it. Furthermore, given that dollar price volatility has a greater impact on life expectancy than the dollar price itself, policymakers should continue to reduce and stabilize dollar price fluctuations in the long term.