Background & objectives: Despite the importance and impact of health and education on economic growth in countries, the causal relationship between education and health is important to policymaking. This study aimed to investigate the causality relationship between education and health in the short and long runs using the Vector Error Correction Model (VECM) in Iran. Method: This was an analytical and applied study, conducted at the national level using Vector Error Correction Model for Iran. The data type was annual time series which extracted from the World Bank website between the years of 2017-1996. The VECM and the required tests were estimated in Eviews 10 software. Results: the result showed that there was a cointegration vector for the health function of Iran in these years, i. e., current health was not only a function of independent variables of the model but also a function of health and education variables in previous periods. Also, in the short and long run, the years of schooling had the causal effect on life expectancy and, life expectancy had a causal effect on years of schooling in Iran. GDP and health expenditures per capita had a positive effect and the carbon dioxide production per capita had a negative impact on life expectancy. Conclusion: According to the results, there was a two-way causality relationship between education and health in the short and long runs in Iran, so that in the short and long runs, increased education can lead to improved health status, and improved health status can lead to increased education. Therefore, the policies of the education and health sectors are complementary.

Introduction: The effect of exchange rate fluctuations on the balance of payments is very important in economic literature. Pharmaceutical is one of the sub-sections of the balance of payments.Methods: By using vector error correction model, this paper seeks to identify the effect of exchange rate changes on the balance of payments by evaluation the existence of J-Curve in Pharmaceutical industry over the period of 1991 to 2012.Results: The results show the existence of J curve in Iran's Pharmaceutical industry balance of payments. It means that exchange rate appreciation has reduced Pharmaceutical industry balance of payments in the first period but after a period it has increased Pharmaceutical industry revenues and improved its balance of payments. According to the analysis of variances of export and import functions the pharmaceutical industry has highly been affected by changes in exchange rate.0.19 And 0.016 Changes in these functions have been caused by exchange rate changes and the balance of payments is more sensitive to changes in foreign income. The rate of effectiveness of the income variation is 0.25.Conclusion: The increase in the exchange rate has improved the pharmaceutical industry trade balance of the country in the last periods of shocks. Also, changes in gross domestic product have had the greatest impact on the fluctuation of Iran's pharmaceutical trade balance.

Few studies have recently supported the preposition that housing price changes in one location can be affected not only by its history but also by housing price changes in other locations (Ripple effect). There are many reasons why housing price changes in some areas may lead housing price movements in the other areas. The possible causes include structural differences and economic interdependence between areas, migration as well as informational factors.This paper examines spatial effects of house price dynamics within Tehran. The first hypothese is that house prices have started rising first in the north and then spread out over the rest of the city. The second hypothesis is that there is a strong price relationship between contiguous districts. Spatial autoregressive (SAR) and vector error-correction (VEC) models are emplyed to estimate the empirical models using quarterly panel data of Tehran housing markets over the period 1991 to 2006.The results confirms that there is a positive spatial interrelationship among districts. Moreover, the findings indicate the evidence of leading role of the district 1 in the northern half of the city while district 2 seems to have a more prominent effect on the center and the west. Furtheremore, the price interdependence of contiguous districts in the north is seen to be more significant and stronger than the south.

In this paper, nonlinear adjustments and price transmission mechanism between the two levels of wholesale and retail for the egg market has been examined under the threshold vector error correction model (TVECM) framework using Hansen and Seo (2002)’s two-regimes). The unit root test showed that both wholesale and retail egg price series were integrated of order one. The Johansen co-integration test indicated that in the long term, the prices at both ends of marketing chain were quite integrated, i.e. any change in the price of one level is fully transmitted to the other level. In the next step, the SupLM test confirmed threshold adjustment between wholesale and retail series towards the long-run equilibrium. The estimated TVECM (2) showed that the error correction coefficients of retail price equation were significant in both regimes and its value in the first regime was larger than the second regime, while they were insignificant for the wholesale price equation. This indicates that when deviations in the long-run equilibrium occur, wholesalers are reluctant to react, but retailers react to both positive and negative shocks. The findings revealed that the reaction rate is much higher for the positive shocks then the negative ones. The short-run dynamics are almost the same in both regimes; however the speed of adjustment in the second regime is higher than the first regime.

The underground economy is a global phenomenon that exists in all countries of the world and it has attracted the attention of many researchers and government organizations in different countries. Having information of the size of the underground economy is very important from the aspect of tax evasion, the effectiveness of monetary and fiscal policy, economic growth and income distribution. Evidence indicates the increased share of underground economy in most countries of the world. In broad concept, the underground economy is those activities which are not included in the national accounts. Removing some of the economic activities from the national accounts which are used as a measure of a country's output of goods and services during an accounting period creates numerous problems. The main purpose of this paper is to estimate the size of the underground economy in the period 1976 to 2010 by the method of Tanzi and identify factors influencing it by the method of Johansen-Juselius and (VECM). The results show that the underground economy allocated a high volume of the country's economy to itself and shows a growing trend in the time period of study. In addition, both size of government and revenue have a significant and positive relationship with the size of the underground economy.