s
Mostafa Eskandari; Abbas Memarnejad; Hoseini Seyed Shamsoldin
Abstract
Monetary policies are a set of decisions and actions of the country's monetary authorities to influence the level of economic activities. The aim of the present study was to analyze the convergence of optimal monetary policies in the Iranian economy and welfare using the Dynamic Stochastic General Equilibrium ...
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Monetary policies are a set of decisions and actions of the country's monetary authorities to influence the level of economic activities. The aim of the present study was to analyze the convergence of optimal monetary policies in the Iranian economy and welfare using the Dynamic Stochastic General Equilibrium (DSGE) model. The research method is analytical-descriptive and applied. The implementation method was analyzed using data taken from the Statistical Center of Iran and the Central Bank. The results showed that this type of optimal monetary policies had a direct impact on the entire economy and welfare. The results showed that the Central Bank, by enacting optimal monetary policies, has created a significant impact on the rate of economic growth; during this period (1390-1401), economic growth has improved by 0.5%, 1.5% and 2%; Therefore, it can be stated that by adopting optimal monetary policies, total production increases and consequently the employment rate increases. The wage rate has been increasing; therefore, economic growth improves. By analyzing economic shocks, it can be stated that the entire economy is affected by these types of shocks; therefore, monetary policies should be adopted in a way that they do not have a negative impact on the economy. As stated in economic shocks, the shock caused by an increase in the exchange rate increases inflation and affects other economic variables. The shock caused by an increase in oil production and also increase in foreign assets cause economic growth.
s
robabeh khilkordi; Nezamuddin makiyan; habib ansarisamani
Abstract
Currency volatility is very important because of its adverse effects on economic performance and especially economic stability. In this regard, the present study investigates the behavior of the most important macroeconomic variables on exchange rate fluctuations in Iran's economy based on seasonal data ...
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Currency volatility is very important because of its adverse effects on economic performance and especially economic stability. In this regard, the present study investigates the behavior of the most important macroeconomic variables on exchange rate fluctuations in Iran's economy based on seasonal data of 1376-1401 with the help of the Auto-explanatory Vector Model Augmented with Time-varying Parameters (TVP-FAVAR). The results of the study of shock-reaction functions of the variables indicate that many exchange rate fluctuations are influenced by the behavior of some of the most important fundamental variables of the economy, including the budget deficit, inflation rate, liquidity and economic policy uncertainty. The more accurate modeling of exchange rate fluctuations and following that, predicting the range of exchange rate fluctuations in future periods requires that the relevant policy makers, while closely monitoring the behavior of the fundamental variables of the economy, adopt stability-creating policies to prevent extensive and unpredictable changes in the behavior of such variables
Amir Hossein Ghaffari Nejad; Majid Maddah
Abstract
In the literature of political macroeconomics stresses role of political competition in the economic performance of countries; Political competition can influence economic growth by affecting resources allocation and quality of economic policies. This paper examines the effect of political competition ...
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In the literature of political macroeconomics stresses role of political competition in the economic performance of countries; Political competition can influence economic growth by affecting resources allocation and quality of economic policies. This paper examines the effect of political competition on economic performance in Iran in the framework of a dynamic growth model by Heteroscedasticity and autocorrelation consistent estimators (HAC) method over the period 1364 to 1397. In this regard, we use the degree of alignment of government and parliament, power balance, power distribution, political and economic freedom and a composite index as the determinants of political competition. The results of estimates confirm the hypothesis of non-linear effect of political competition on economic growth in the Iranian economy as U-shape relationship such as at first the higher levels of political completion tend to be associated to smaller real GDP per capita, but after the optimal value (minimum political competition), production will increase. In this step, the actors of political system, by accepting the rules of political competition and avoiding factional policies focuses policies, focus policies that promote economic growth. This situation, which is known as the learning of political competition, enjoys society the benefits of competition political parties. The findings of this research supports the importance of political competition as one of the sources of economic growth.
s
Mohammadghasem Rezaee; Majid Maddah; Yeganeh Mousavi Jahromi
Abstract
Taxes are a policy-making tool for the economic stabilization and, on this basis; local taxes can influence provinces’ economic performance. Local taxes are taxes for which the rates and bases are determined by the local authorities. These taxes finance services to be provided for local residents. ...
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Taxes are a policy-making tool for the economic stabilization and, on this basis; local taxes can influence provinces’ economic performance. Local taxes are taxes for which the rates and bases are determined by the local authorities. These taxes finance services to be provided for local residents. Local taxes influence regional economic growth for the following main reasons: increased competition among the regions, higher economic growth, decreased shadow economy and finally, improvement of taxpayer’s behavior. Thus, this research has reviewed and empirically analyzed the effect of corporate income tax, personal income tax, property tax and consumption tax as local taxes on country provinces’ economic growth. To this end, within the framework of ECM models, a PMG methodology was employed that made use of quarterly data during March 2005- July 2015. The results of the model estimation show that, property tax and consumption tax increase regional economic growth, whereas corporate income tax and personal income tax decreases the regional economic growth. Also, revenue-neutral shift away from either corporate income or personal income tax toward property or consumption tax leads to increases the regional long- run growth. The results indicate that optimal local taxation (with property and consumption tax bases) leads to provincial economic growth. So, this study can be used as guidance for economic policy-makers.
Economic Growth
Mahboobeh Farahati
Abstract
The main objective of this study is to examine the effect of revenue-neutral change in the tax structure on economic growth in Iran using data for the period of 1361-1395. To this end, an empirical model has been proposed to analyze the effect of substituting different tax items for each other on economic ...
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The main objective of this study is to examine the effect of revenue-neutral change in the tax structure on economic growth in Iran using data for the period of 1361-1395. To this end, an empirical model has been proposed to analyze the effect of substituting different tax items for each other on economic growth in such a way that the total tax revenue remains constant. The results of cointegration analysis based on the autoregressive distributed lag (ARDL) approach show that a revenue-neutral transfer of indirect taxes to income tax or wealth tax increases economic growth in the long run. However, a revenue-neutral transfer of indirect taxes to corporate taxes reduces economic growth in the long run. Also, among direct taxes, a revenue-neutral transfer of corporate taxes to income tax or wealth tax as well as a revenue-neutral transfer of income tax to wealth tax promote economic growth in the long run. Furthermore, the findings indicate that the highest and lowest increase in economic growth correspond to the substitution of wealth tax for corporate taxes and of income tax for indirect taxes, respectively. The results of this study have important policy implications for tax structure reform in Iran's economy.
Economic Growth
Mohsen Mehrara; Sadeq Rezaei Bargoshadi
Volume 6, Issue 23 , May 2016, , Pages 114-89
Abstract
This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth ...
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This paper identifies determinants of economic growth in Iran, by using averaging methods and annual time series data from 1974 to 2012. The results indicate that ratio of oil revenue toGDPis the most important variable affecting economic growth. Also the second and third effective variables on growth are respectively ratio of imported capital and intermediate goods toGDPand labor force which lead to an increase in growth. Endogenous growth factors which are the factors contributing to formation of human capital, not possess a large role in growth process. Investments, especially government investment affects contrary to were expected. In fact, low quality, and productivity of investments and poor allocation reduced importance of investment’s quantity. The nature of Iran’s economy has not endogenous and dynamic features and predominantly, growth has been made by injecting of exogenous sources. Emphasis on formal and informal educational orientation in the quality of human capital instead of increasing in quantity of education is recommended.
OPEC
Abo Alghasem AsnaAshari; Kamran Nadri; Asghar Abolhasani; Nader Mehregan; Mohammad Reza Babaei
Volume 6, Issue 22 , January 2016, , Pages 102-85
Abstract
Like most of oil exporting countries, Iran’s economy is exposed to the government’s great share of economic activites, complicated monetary and economic policies and a meager activity in production section.Thus a shock in oil price has a significant effect on domestic production, inflation ...
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Like most of oil exporting countries, Iran’s economy is exposed to the government’s great share of economic activites, complicated monetary and economic policies and a meager activity in production section.Thus a shock in oil price has a significant effect on domestic production, inflation and money. On the proposed model of Qu and Perron (2007), the present study Investigates structural shocks of Iran’s economy stemed from exogenous oil price considering the variables of production, inflation and money as independent and endogenous variables during the period from March 1961 to February 2012. Accordingly, five structural shocks have been identified in September 1973, July 1979, May 1990, July 1994 and May 2006. The most considerable effect of oil price on production, inflation and money growth were in the first, first and fifth regimes respectively. Moreover, the longest period of oil price effects on production, inflation and money growth were in forth, second and fifth regimes respectively.
Saeed Karimi; Younes Nademi; Hoda Zobeiri
Volume 5, Issue 18 , March 2015, , Pages 64-51
Abstract
Unemployment is one of the most important challenges of Iranian economy that affects the society and economic performance. The aim of this paper is to investigate the impact of government size on unemployment rate in Iranian economy. By using the model of Christopoulos, Loizides & Tsionas (2005), ...
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Unemployment is one of the most important challenges of Iranian economy that affects the society and economic performance. The aim of this paper is to investigate the impact of government size on unemployment rate in Iranian economy. By using the model of Christopoulos, Loizides & Tsionas (2005), the relationship between government size and unemployment has been investigated during 1974-2012. The results of threshold model indicate that when the government size is less than 0.2484, increasing of government size has a significant negative impact on unemployment but after the mentioned threshold value, due to crowding out effect of government intervence, government size has a significant positive impact on unemployment. Also, the results of estimation show that inflation has a significant negative impact on unemployment that confirms Philips curve in Iranian economy.
Ebrahim Hadian; Ali Hussein Ostadzad
Volume 3, Issue 12 , November 2013, , Pages 74-57
Abstract
Environmental damage caused by economic activities is known as one of the most important side that affecting social welfare adversely. Pollution emissions related with more economic activities reduce positive impact of economic growth on social welfare. Hence concern of policy makers is to formulate ...
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Environmental damage caused by economic activities is known as one of the most important side that affecting social welfare adversely. Pollution emissions related with more economic activities reduce positive impact of economic growth on social welfare. Hence concern of policy makers is to formulate and implement the economic planning in order to control environmental damage caused by expanding of economic activities. One of these control instruments is to levy a pollution tax. Therefore in this paper we are tried to calculate the optimal level of pollution tax for Iranian economy using an augmented growth model. To this end, we intended a tripartite model consists of households, firms and government. After solving the model, we estimated optimal pollution tax using data of Iranian economy. Calibrating the solved model, the optimal pollution tax is estimated about 7.8 thousand Rials per ton of CO2 emissions.
