Interest Rate
Hasan Heidari; Jafar Haghighat; Zahra Karimi Takanlo; reza ranjpour
Abstract
In the Iranian economy over the past few decades, the financial system has been subject to many restrictions, including the grading of bank interest rates. In this study, considering the economic conditions of Iran, the interest rate of bank deposit is determined by combining the two approaches of liberalization ...
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In the Iranian economy over the past few decades, the financial system has been subject to many restrictions, including the grading of bank interest rates. In this study, considering the economic conditions of Iran, the interest rate of bank deposit is determined by combining the two approaches of liberalization and financial development and financial constraint. In this way, contrary to the bank's interest rate order, the central bank has issued two interest rates as a ceiling and a bank interest rate to banks, which are upper and lower limits. Banks can then operate freely and competitively, depending on their performance, between profit and loss ceilings, and determine the appropriate rate of interest for the banks themselves and adjust the business cycle more quickly and maintain their finances. To do this, a smooth panel regression model (PSTR) with data from the central bank and commercial banks of the country in the interval (2006-2016) has been estimated high and low.bank deposit interest rates.
s
Mohammad Mahdi Bargi Oskooee; Mohammad Khodaverdizadeh; Saber Khodaverdizadeh; Ali Vafamand
Volume 7, Issue 27 , July 2017, , Pages 65-80
Abstract
This paper investigates the threshold effects of income inequality on economic growth in developing countries for the period of 2000 to 2012, using Panel Smooth Transition Regression (PSTR) model. The linearity test results indicate strongly nonlinear relationship among variables under consideration. ...
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This paper investigates the threshold effects of income inequality on economic growth in developing countries for the period of 2000 to 2012, using Panel Smooth Transition Regression (PSTR) model. The linearity test results indicate strongly nonlinear relationship among variables under consideration. Moreover, considering one transition function and one threshold parameter, as a two regime model, is sufficient to specification of nonlinear relationship among variables.The results indicate thatthreshold value for developing countries is 0.43 and the estimated slopeparameter is 0.35. In the first regime the impact of income inequality is positive and in the second regime has a negative impact on economic growth. human capital in the both regimes has symmetric and consistent effect on economic growth. Other results indicate that population growth and trade openness had been asymmetric effect on economic growth in the both regimes.