fojan tadayon; Homayoun Ranjbar; mostafa rajabi; morteza sameti
Abstract
Developing countries, including Iran, are trying to make up for the lack of private investment and other problems by trade deficit and budget deficit policies. These policies are supported by Keynes and his supporters. They believe that expansionary effects will shift the macroeconomic budget deficit ...
Read More
Developing countries, including Iran, are trying to make up for the lack of private investment and other problems by trade deficit and budget deficit policies. These policies are supported by Keynes and his supporters. They believe that expansionary effects will shift the macroeconomic budget deficit to equilibrium. But if the budget deficit policy is adopted without considering the total supply, it will cause more inflation and trade deficit without eliminating the recession. In this study, in order to investigate the optimal path of budget deficit and trade deficit in Iran's economy, based on the design of optimal paths of economic variables during the period of 1978-2017, an optimal control theory has been used. Therefore, considering the dynamic behavior of economic variables in the country, the BP-IS-LM model is fitted according to economic theories and based on the econometric bases through the three-stage least squares method. The results of this estimate are used to policy in optimal control theory. The results of this study indicate that Iran's economy will need to control the government expenditures to reach the desired level of target variables, and contractile financial policies will have better results in controlling twin deficits.
Sadegh Bakhtiari; Homayoun Ranjbar; Somayeh Ghorbani
Volume 3, Issue 9 , April 2013, , Pages 58-41
Abstract
Today in economic studies, the composite index is often used for measuring economic welfare. One of the current and most comprehensive composite index for measuring level of economic well being is the one introduced by osberg (IEWB) and later have developed by the Centre for the Study of Living Standards ...
Read More
Today in economic studies, the composite index is often used for measuring economic welfare. One of the current and most comprehensive composite index for measuring level of economic well being is the one introduced by osberg (IEWB) and later have developed by the Centre for the Study of Living Standards (CSLS). In this index, among the different economic variables that affect economic welfare, the most importance is given to the components related to four dimensions, namely consumption, wealth, income distribution and economic security. So in this study the IEWB as a comprehensive index of economic welfare has been chosen. This paper, for the first time, tries to introduce IEWB and applies it to the data for selected developing countries during the 2002 to 2007 period and results have been analyzed. The findings of this study indicate that during the period under consideration on average Morocco has the highest value of the IEWB index, and Bangladesh has the lowest one. In terms of rate of growth, Turkey has the highest and Bangladesh has the lowest rate of growth. Iran did not have a good position and ranked 8 among the countries under consideration.
