The Analysis of Effects of Inter generational Distributional fiscal policies on capital growth in Iran in the framework of the model Overlapping -Generation (OLG)

Vaez  Barzani, Mohammad; Mohammadi Motlagh, Mohammad

doi:10.30473/egdr.2021.58146.6164

Document Type : Quarterly Journal

Authors

¹ Associated Professor, Department of Economics, University of Isfahan, Isfahan, Iran

² M.S. Graduated of Economics, University of Isfahan, Isfahan, Iran

https://doi.org/10.30473/egdr.2021.58146.6164

Abstract

Abstract:
In many countries, governments have a significant impact on economy through the implementation of monetary and fiscal policies. However, the implementation of inter generational distribution policies, which are in fact the application of fiscal policies in favor of a certain age group of society, has been received less attention by policymakers in developing countries, including Iran.The purpose of this study shows the impact of inter generational fiscal distribution policies on economic growth, using the overlapping generations model developed Blanchard (1985) and calibrating the model, by applying MATLAB software to extract the steady-state equilibrium conditions for consumption growth and capital in Iran economy.

The research results point out that the impacts of distributive fiscal policies on capital growth and consumption growth as two variables affecting the growth rate of the economy, have two separable statuses. The first status belongs to the smoothing rate of consumption in utility functions with constant relative risk aversion (CRRA) which it is less than one; In mentioned situation, by applying distributive fiscal policies in favor of the young age group, the Iranian economy is faced with an increase in capital growth and consumption growth, and the second status is a situation where the smoothing rate of consumption is chosen more than one. In said case, the applying fiscal policies have different results from the previous status.

JEL: C61, D31, E21.

Keywords

References

بانک مرکزی ایران (1397-1387). ﺁمار سری زمانی سال‌های مختلف، تهران.

جباری، امید و اکبری، نرگس (1398). "بررسی اثرات پویای شوک‌های سیاست مالی بر متغیرهای تولید، مصرف و سرمایه‌گذاری بخش خصوصی در ایران". پژوهشنامه اقتصاد کلان، شماره 26، 62-37.

خاندوزی، سید احسان؛ مجاهدی، محمدمهدی؛ خورسندی، مرتضی و افسری، علی (1398). "تأثیر رفتار بازتوزیعی بر پس‌انداز و انباشت سرمایه (در چارچوب الگوی نسل‌های همپوشان)". فصلنامه پژوهشنامه اقتصادی، شماره 71، 184-155.

خدایی، مهدی؛ جعفری، محمد و فتاحی، شهرام (1397). "بررسی اثرات سیاست‌های مالی بر رشد اقتصادی ایران (مدل‌های حالت -فضا)". فصلنامه علمی پژوهشی پژوهش‌های رشد و توسعه اقتصای، شماره 31، 92-79.

صمدی، علی‌حسین؛ رنانی، محسن و دلالی اصفهانی، رحیم (1387). "رابطه حقوق مالکیت و رشد اقتصادی در چارچوب یک مدل رشد درون‌زا". مجله تحقیقات اقتصادی، دوره 43، شماره 4، 52-20.

کاشانیان، زهرا؛ راغفر، حسین و موسوی، حسین (1397). "شبیه سازی تأثیر سالمندی بر متغیرهای اقتصاد کلان". مجله تحقیقات اقتصادی، دوره 53، شماره 1، 115-93.

کیارسی، مهراب (1386). "نرخ بهینه مالیات و مخارج دولتی در چارچوب الگوی سه بخشی رشد درون‌زا –مدل ایران". پایان نامه کارشناسی ارشد اقتصاد، دانشکده علوم اداری و اقتصاد دانشگاه اصفهان.

محمدی مطلق، محمد (1389). "تحلیل تأثیر سیاست‌های مالی توزیعی بر رشد اقتصادی ایران". پایان نامه کارشناسی ارشد اقتصاد، دانشکده علوم اداری و اقتصادی، دانشگاه اصفهان.

Age' nor, P. R. (2008). “Fiscal Policy and Endogenous Growth With Public Infrastructure”. Oxford Economic Papers, 60(4), 57-87.

Auerbakh, A. (2012). “Societal Aging: Implications For Fiscal Policy”. IMES Discussion Paper Series, 12(4), 2-23.

Baier, S. L. & Glomm, G. (2001). “Long Run Growth and Welfare Effects of Public Policies with Distortionry Taxation”. Journal of Economic Dynamics & Control, 25(4), 2007-2042.

Barro, R. J. & Sala-I- Martin‚ X. (2004). “Economic Growth”. New York: McGraw-Will.

Barro, R. J. (1990). “Government Spending in a Simple Model of Endogenous Growth”. Journal of Political Economy, 98 (5), 103-125.

Blanchard, O. J. (1985). “Debt, Deficits and Finite Horizons”. Journal of Political Economy, 93(2), 223-247.

Dalamagas, B. (2000). “Public Sector and Economic Growth, the Greek Experience”. Applied Economics, 32(4), 277-288.

Gordon, R. (2019). “The Rise and Fall of American Worth”. Princeton University Press, Princeton Jersey.

Heijdra, B. J. & Bovenberg, L. A. (2012). “Environmental Tax Policy Intergenerational Distribution”. Journal of Public Economics, 67(8), 1-24.

Heijdra, B. J. & Ligthart, J. E. (2002). “Tax Policy, the Macro Economy and Intergenerational Distribution”. IFM Staff Papers, 1176-1196.

Kosempel, S. J. & Banerjee, R. (2005). “Inter-Generational Redistribution in a Growth Model”. Economics Bulletin, 5(1), 1-6.

Kosempel, S. M. (2004). “Finite Lifetime and Government Expenditure and Long- Run Growth”. Journal of Economic and Business, 56(3), 197-210.

lucas, R. (1988). “On the Mechanics if Development Planning”. Journal of Monetary Economics, 22(1), 3-42

Nakhli, R., Rafat, M. & Bakhshi, R. (2020). “ADSGE Analysis of the Effects of Economic Sanction from the Central Bank of Iran”. Iranian Journal of Economic Studies, 9(1), 35-70.

Pinheiro, J. (2021). “Generational Accounting in Portugal: An Assessment of Long-Term Fiscal Sustainability and Intergenerational Inequality”. Portuguese Economic Journal, 20(4), 181-221.

Ramirez, M. D. (2002). “Public Capital Formation and Labor Productivity Growth in Mexico”. Atlantic Economic Journal, 30(4), 366-379.

Ramsey, F. P. (1928). “A Mathematical Theory of Saving”. The Economic Journal, 38(152), 543-559.

Romer, p. (1986). “Increasing Returns and Long-Run Growth”. Journal of Political Economy, 94(5), 1002-1037.

Verbon, H. (2014). “Transfers to the Old, Government Debt and Demographic Change”. Journal of Population Economics, 3(2), 89-104.

Yuwei, H. (2005). “Pension Reform, Economic Growth and Financial Development-An Empirical Study”. An Empirical Study.

Economic Growth and Development Research

The Analysis of Effects of Inter generational Distributional fiscal policies on capital growth in Iran in the framework of the model Overlapping -Generation (OLG)

References

References

Volume 12, Issue 47
June 2022
Pages 133-148

The Analysis of Effects of Inter generational Distributional fiscal policies on capital growth in Iran in the framework of the model Overlapping -Generation (OLG)

References

References

Volume 12, Issue 47June 2022Pages 133-148

Volume 12, Issue 47
June 2022
Pages 133-148