Payame Noor University Economic Growth and Development Research 2228-5954 14 54 2024 03 20 The Effect of Money Laundering on Macroeconomic Variables in the Framework of Dynamic Stochastic General Models The Effect of Money Laundering on Macroeconomic Variables in the Framework of Dynamic Stochastic General Models 54 39 10197 10.30473/egdr.2023.68200.6731 FA Aida Hajnouri Ph.D Student in Financial Management, Allameh Tabataba'i University, Tehran, Iran. Meysam Amiry Assistant Professor, Department of Finance and Banking, Allameh Tabataba'i University, Tehran, Iran. Maghsoud Amiri . Professor, Department of Management and Accounting, Allameh Tabataba'i University Hossein Tavakolian . Associate professor, Department of Economics, Allameh Tabataba'i University, Tehran, Iran. Moslem Peymani Assistant professor, Department of Finance and Banking, Allameh Tabataba'i University, Tehran, Iran. Journal Article 2023 06 13 Money laundering one of the types of financial corruption has a very detrimental role on the economic. Planning the country's economic development and making decisions to implement economic policies requires recognition of the performance of the whole economy, including the formal and legal sector, and the informal and illegal sectors affected by money laundering. Hence, recognition of the consequences of money laundering shocks is a prelude to combating this phenomenon. This research has used dynamic stochastic general equilibrium models framework to model Iran's money laundering sector and investigate efficiency shocks for legal production and illegal production. The results show that the proposed model has been able to identify cyclical behavior and fluctuations of variables. The results of the research and comparison of a positive momentum of productivity in the legal and non legal production sectors indicate similar behavior of most variables except labor force in both sectors, so that the positive momentum of productivity in both legal and illegal production sectors increases the production of legal and illegal enterprises and the increase in total production, the level of labor wage and commodity prices in the legal sector, An increase in consumption in the illegal sector and an increase in the consumption of all goods, an increase in the amount of investment and a decrease in physical capital, and finally an increase in the demand for money and an increase in the interest rate. Money laundering one of the types of financial corruption has a very detrimental role on the economic. Planning the country's economic development and making decisions to implement economic policies requires recognition of the performance of the whole economy, including the formal and legal sector, and the informal and illegal sectors affected by money laundering. Hence, recognition of the consequences of money laundering shocks is a prelude to combating this phenomenon. This research has used dynamic stochastic general equilibrium models framework to model Iran's money laundering sector and investigate efficiency shocks for legal production and illegal production. The results show that the proposed model has been able to identify cyclical behavior and fluctuations of variables. The results of the research and comparison of a positive momentum of productivity in the legal and non legal production sectors indicate similar behavior of most variables except labor force in both sectors, so that the positive momentum of productivity in both legal and illegal production sectors increases the production of legal and illegal enterprises and the increase in total production, the level of labor wage and commodity prices in the legal sector, An increase in consumption in the illegal sector and an increase in the consumption of all goods, an increase in the amount of investment and a decrease in physical capital, and finally an increase in the demand for money and an increase in the interest rate. https://egdr.journals.pnu.ac.ir/article_10197_8da046da74c462db4be0ba948cc2027f.pdf