Monetary policy
Javad Khalilzadeh; Hassan Heidari; Sahar Bashiri
Abstract
In this paper, the effect of government expenditures with the volume of bank credits on economic growth in Iran, considering the role of monetary policy in the form of a dynamic stochastic genral equilibrium model is studied. for this purpose, we first defined a model consisting of households, production ...
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In this paper, the effect of government expenditures with the volume of bank credits on economic growth in Iran, considering the role of monetary policy in the form of a dynamic stochastic genral equilibrium model is studied. for this purpose, we first defined a model consisting of households, production sector, government and oil, banks and intermediary financial institutions and the monetary status for the Iranian economy. Then, the model of the study was specified and the equations of each section were explained. After specifying the assumptions, characteristics and relationship of different parts of the model with each other, each section was optimized. After simulating the model, the model was fitted with real and simulated ratios and also using the torque variables and finally, the effects of the impuls response to the shock of government expenditures on the variables of production, consumption, investment, facilities and bank deposits were investigated that in many cases, the results have been consistent with the theoretical expectations and economic realities of the country
Dynamic Panel Data
Hassan Heidari; asall sadeghpour
Volume 6, Issue 21 , November 2015, , Pages 28-11
Abstract
This study uses data from the eight largest Islamic countries known as D-8 for the period 2000 to 2013 concerns to assess the effect of tourism, energy consumption and political instability on economic growth. To address the objective of this study, we utilize both the static panel data approach as well ...
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This study uses data from the eight largest Islamic countries known as D-8 for the period 2000 to 2013 concerns to assess the effect of tourism, energy consumption and political instability on economic growth. To address the objective of this study, we utilize both the static panel data approach as well as the dynamic generalized method of moments (GMM) estimator to examine the impact of candidate variables. Our results show that energy consumption and tourism significantly contribute to the economic growth of countries in the D-8 region. Hence, our study lends some support to the existence of the tourism-led growth and energy-led growth hypotheses in the region. In line with our expectation, our estimation results also reveal that political instability impedes the process of economic growth and development in the D-8 countries. There fore, it should be take serious action in these countries to overcome political instability and attract international tourists to boost economic growth. Since energy consumption has the greatest impact on economic growth in member countries, policies that reduce energy consumption without planning to support the growth of the manufacturing sector in these countries, will have disturbing impact on economic growth.
New Keynesians
Hassan Heidari; lesyan saeidpour
Volume 5, Issue 20 , August 2015, , Pages 78-61
Abstract
This paper investigates the effects of fiscal policy shocks and fiscal multipliers of the Iranian economy in the framework of New-Keynesian Dynamic Stochastic General Equilibrium model (DSGE) by applying Bayesian approach. The results indicate that consumption tax shock lead to short-run decrease in ...
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This paper investigates the effects of fiscal policy shocks and fiscal multipliers of the Iranian economy in the framework of New-Keynesian Dynamic Stochastic General Equilibrium model (DSGE) by applying Bayesian approach. The results indicate that consumption tax shock lead to short-run decrease in output. Moreover, government spending shock leads to short-run increase in output and long-run increase in inflation. This result makes sense as government expenditures are financed by an increase in the monetary base.The results of structural fiscal multipliers indicate that short-run government expenditure multiplier with 1.29 percent has a direct relationship and sales and payroll tax multiplier with 0.22 percent has an indirect relationship with output. Therefore financing government spending with sales and payroll tax can be considered as an effective fiscal policy to increase output.
Hassan Heidari; Davoud Hamidi Razi
Volume 5, Issue 19 , June 2015, , Pages 56-41
Abstract
The purposes of this paper are the investigation of convergence hypothesis for GDP per labor in the presence of spatial dependence, and estimation of the spatial spillover effects of economic growth among the 11 adjacent countries of Caspian Sea during 1990 to 2010. Hence, the spatial Solow model has ...
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The purposes of this paper are the investigation of convergence hypothesis for GDP per labor in the presence of spatial dependence, and estimation of the spatial spillover effects of economic growth among the 11 adjacent countries of Caspian Sea during 1990 to 2010. Hence, the spatial Solow model has been estimated in the framework of spatial dynamic panel data. The results indicate that conditional beta convergence hypothesis is true for the countries under investigation and every country with average speed of 26.2% moves in the balanced growth path towards its own steady state. Moreover, according to the spatial Durbin model, there is a positive spatial autocorrelation of per labor GDP among adjacent countries of Caspian Sea; if the weighted average of neighboring countries per capita labor GDP of a country increases one percent, average per capita income of the country's labor force will raise 0.75 percent. Deepening regional cooperation and the development of common markets in order to gain more economic benefits are the two important policy proposed in this study.
Hassan Heidari; Roghayyeh Alinezhad; Javad Jahangirzadeh
Volume 4, Issue 15 , August 2014, , Pages 60-41
Abstract
This study aims to investigate the potential threshold effects in the relationship between democracy and economic growth for the D-8 countries over the period 1996-2011. In this investigation we also introduce other variables including education expenditures, government consumption expenditures, agricultural ...
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This study aims to investigate the potential threshold effects in the relationship between democracy and economic growth for the D-8 countries over the period 1996-2011. In this investigation we also introduce other variables including education expenditures, government consumption expenditures, agricultural raw materials exports, inflation rate and index of openness. In order to do this investigation, the paper uses the Panel Smooth Transition Regression (PSTR) model that is appropriate method for describing cross-country heterogeneity. Our results reject the linearity hypothesis, and estimates two regimes that give a threshold at democracy of -0.971. In the first regime, democracy, education expenditure and government consumption expenditure variables have a significantly positive impact on GDP and agricultural raw materials exports, inflation rate and index of openness variables have a significantly negative impact on GDP. At the second regime, democracy, education expenditure, agricultural raw materials exports and index of openness variables have a positive impact and government consumption expenditure and inflation rate variables have a negative impact on GDP. Though, the impact of democracy and education expenditure are increased and the impact of inflation rate dramatically declined and government consumption expenditure, agricultural raw materials exports and index of openness sign have changed between two regimes. Therefore, empirical results confirm the compatibility view.
Hasan Heidari; Hamidreza Faaljou; Elmnaz Nazariyan; Yousef Mohammadzadeh
Volume 3, Issue 11 , September 2013, , Pages 74-57
Abstract
There are several studies that show social capital and health capital have impressive effect on economic growth. On the other hand, many researches in the health and community field, prove close relationship between social capital and health capital. So, this study examines and evaluates the health and ...
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There are several studies that show social capital and health capital have impressive effect on economic growth. On the other hand, many researches in the health and community field, prove close relationship between social capital and health capital. So, this study examines and evaluates the health and social capital effects and also their interaction effects on economic growth in the Middle East countries for 1990-2010 period using panel data and LS (EGLS) and 2SLS(EGLS). Data of study, extracted from WDI, UNDP, PWT and WGI statistical reports. Results show, not only health and social capital have impressive effect on economic growth, but also their interactions -given that social capital improves physical and mental health indicators- have significant effect on economic growth. As well as, public health improves the social indicators, and therefore has a double effect on the growth and economic development.
