Iranian Journal of Economic StudiesIranian Journal of Economic Studies
http://ijes.shirazu.ac.ir/
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http://ijes.shirazu.ac.ir/
Feed provided by Iranian Journal of Economic Studies. Click to visit.Comparative Analysis of Sectoral Multipliers of Input-Output Model (IOM) and Social Accounting ...
http://ijes.shirazu.ac.ir/article_4716_0.html
In This article, we show that the comparison of the sectoral production multipliers between Input-Output Model (IOM) and the Social Accounting Matrix (SAM) framework without taking into account of both the accounting balances and theoretical consideration is almost impossible. On the theoretical basis, the IOM provides the Leontief’s production function, on the basis of which the sectoral output multiplier can be derived whereas in the SAM framework, the combined Leontief-Keynes models dominate the multipliers which are commonly known as the accounting multiplier matrix. The inter-industry block of this matrix, are known as the sectoral supply multipliers. Therefore, the two sectoral multipliers are of two different nature and cannot be compared for the assessment of the secoral performance and sectoral policy analysis as key sectors. These evidences lead us to an important question that is it possible to make the sectoral multipliers of the two approaches comparable? The overall results depict that sectoral output multipliers based on conventional IOM grossly overestimate the key sectors while sectoral supply multipliers based on conventional SAM underestimate the key sectors. To solve the problem and make the sectoral multipliers of the two approaches comparable, the separation of imports is proposed.Mon, 22 Jan 2018 20:30:00 +0100Content
http://ijes.shirazu.ac.ir/article_4777_862.html
Fri, 16 Mar 2018 20:30:00 +0100Gender and the Factors Affecting Child Labor in Iran: an Application of IV-TOBIT Model
http://ijes.shirazu.ac.ir/article_4545_862.html
In this paper we first intend to examine the probability of falling into the realm of child labor by using conditional probability theorem. Furthermore, we will compare the extent of each factor’s effect on boys and girls using a TOBIT regression model. Finally we will analyze aspects of Iran’s labor market to assess the future ahead of the children who work at present. As the results will show, the probability of not attending school conditional on being male is 0.081, whereas the same probability conditional on being female is 0.12. More probability scores are estimated in the paper. Moreover, the results from the TOBIT regression shows that in general boys are more affected than the girls by the same factors. Also, based on the macro statistics published by Iran’s Statistical Center, the graduation of numerous people from graduate schools combined with the low and slow rate of economic growth makes it quite difficult to find a decent work in the country. As a result, the skilled labor force will be content with accepting low wage jobs which are more suitable for the unskilled workers. Therefore, those who left school earlier in their lives will face several problems in the future.Fri, 16 Mar 2018 20:30:00 +0100Notability of Substantive Elements of Economics, in Groundwork of Evolution of Economic Thought
http://ijes.shirazu.ac.ir/article_4736_0.html
This paper is investigating that:" resurging evolution of economic thought, EET, is brilliantly in direction with eminence of substantive elements of economics itself". It presupposes that the substantive elements of economics embraces the following package: 1- maintaining on some epistemic doctrines, including rationality, efficiency and equilibrium.2-dynamic characteristic of economic theories. 3-obvious interdisciplinary framework and systematic relationship with other social sciences.4- Compatibility with mildness and moderation.5- institutional, social and ethical potentialty.6-pluralistic in nature and potentiality for methodological reforms.7-Applying the package in question would create an outstanding analytical power. Due to pluralistic nature of conventional economics, it constitutes mainstream and non-mainstream, neoclassic and non-neoclassical paradigms and so forth. Moreover, neoclassic paradigm includes both orthodox and non-orthodox approaches. This paper maintains on efficacy of moderate and non-orthodox paradigms of conventional economics.Fri, 02 Mar 2018 20:30:00 +0100Inflation Behavior in Top Sukuk Issuing Countries: Using a Bayesian Log-linear Model
http://ijes.shirazu.ac.ir/article_4532_862.html
This paper focused on developing a model to study the effect of sukuk issuance on the inflation rate in top sukuk issuing Islamic economies at 2014‎. ‎For this purpose‎, ‎as the available sample size is small‎, ‎a Bayesian approach to regression model is used which contains key supply and demand side factors in addition to the outstanding sukuk volume as potential determinants of inflation rate‎. ‎In the suggested model‎, ‎inflation rate variable shows an apparent right skewness and the efficiency of log transformation for this variable is confirmed via Box-Cox approach‎. ‎To give Bayesian estimators of the regression parameters‎, ‎we have implemented an MCMC approach including 100,000 iterations in the WinBUGS software‎. ‎The results show that sukuk volume is a significant determinant of inflation in selected Islamic countries‎, ‎but only in ‎the ‎well-‎developed‎ capital market economies its increase could decline the rate of inflation and so sukuk could be used as a ‎‎‎policy instrument for controlling inflation‎. ‎Also the Bayesian estimation of the other parameters shows that increase of money growth and exchange rate growth lead to higher inflation rates‎. ‎Wed, 15 Mar 2017 20:30:00 +0100Inequality of opportunity and its effects on economic growth and per capita GDP
http://ijes.shirazu.ac.ir/article_4781_0.html
Inequality of opportunity and its relationship with economic growth is a concept that has ‎been less discussed in the previous studies. This study attempts to investigate the effects of ‎inequality of opportunity index on economic growth‏ ‏in 15 developing and 15 developed ‎countries during 1995-2015. Using the mean group (MG) estimator within the framework of ‎panel data and creating a new index for opportunity inequality are some contributions of ‎current study. Furthermore, the effects of opportunity inequality and its sub-indices on per ‎capita income are compared with the results of the model when economic growth is ‎dependent variable. The results show that the effects of inequality of opportunities and its ‎sub-indices on economic growth and per capita GDP are different between developed and ‎developing countries. ‎Sat, 17 Mar 2018 20:30:00 +0100The Exchange Rate Asymmetric Pass-Through to Import Price Index: The Case Study of Iran
http://ijes.shirazu.ac.ir/article_4707_862.html
The main objective of this paper is to investigate the asymmetric effects of exchangerate on Iranian import price index using quarterly time series data over the period 1990- 2011. For this purpose, positive and negative shocks of the exchange rate have been separated from each other using dummy variables and the effects of the size of the exchange rate shocks by determining a threshold.The empirical results indicate that the positive and negative shocks of the exchange rate both have positive and asymmetric effects on the import price index. The results show that the effects of negative shocks of the exchange rate on the imports price index is more than the positive shocks effect. In addition, the experimental findings of the research indicate that the effect of foreign exchange rate shocks size on the imports price is asymmetric and the effectiveness extent of smaller shocks is significantly more than that of bigger exchange rate shocks.Moreover, according to the results, the effects of positive and negative shocks based on the size of foreign exchange shocks (small & big) on the imports price is asymmetric and the results show that the effect of small negative shocks is more than big ones and also the effects of small positive shocks is more than big ones.Fri, 16 Mar 2018 20:30:00 +0100Reconnoitering the effective Channels of Monetary Transmission Mechanism in Iran Using a ...
http://ijes.shirazu.ac.ir/article_4807_0.html
The purpose of the present research is to investigate different economic channels that influence the monetary transmission mechanism in Iran. we devised a New Keynesian Dynamic Stochastic General Equilibrium Model. In our model, different types of nominal rigidities are introduced beside all related structural equations, which are extracted and linearized around a steady state point. Furthermore, to design the DSGE model two different monetary rules in the form of Taylor and McCallum rules are used.To estimate these two mentioned models, seasonal data for the period of 1990-2015 is collected. The estimation method used in the study is the Bayesian method. According to the obtained results from variance decomposition, in the Taylor rule-based, q-Tobin, interest rate, exchange rate, wealth and expectation channels are the most effective channels in monetary transmission mechanisms also, in the McCallum rule-based model q-Tobin, interest rate, wealth and expectation channels are the most effective channels in monetary transmission mechanisms . In addition, on the results simulation in Taylor model, increasing interest rate causes a reduction in output, consumption, investment and capital utilization rate, and in the McCullum model, a positive monetary shock can cause an increase in preceding variables, which is a result of price rigidity.Mon, 30 Apr 2018 19:30:00 +0100Modelling and Experimental Testing of Asymmetric Information Problems in Lease and Hire ...
http://ijes.shirazu.ac.ir/article_4709_862.html
This article aims to study lease and hiring contract in the Iranian-Islamic setting and analyze the asymmetric information problem in these contracts. For doing this, we study the characteristics of lease and hiring contracts in Iran (real world experimental characteristics that recognized in other studies), using library method, then we mathematically model different aspects of asymmetric information (hidden information and hidden action) using contract theory. The result of model indicates that there is a list of optimal contracts in any lease or hiring transactions that can solve asymmetric information problems (adverse selection and moral hazard) by satisfying the participation and incentive compatibility constraints. Finally in the experimental analyses we calculate the optimal contract with hypothetical parameters using lingo software and illustrate that the main models provided for every transactions is solvable and the optimal contracts are obtainable. Experimental contracts shows that the lessor has to set security deposits of tenant type θL lower than tenant type θH and set higher monthly rent for him in lease contracts, and principal has to set wage of tenant type θL lower than tenant type θH and set higher length of contract for him in hiring contracts to solve asymmetric information problems.Fri, 16 Mar 2018 20:30:00 +0100Iran's Strategy in Utilizing Common Resources of Oil and Gas: Game Theory Approach
http://ijes.shirazu.ac.ir/article_4808_0.html
Utilization management of Persian Gulf oil and gas reserves is critical due to significance of this area for including 60% of proven oil reserves and 40% of proven gas reserves of the world and determining the world's oil and gas strategies. Using game theory, this paper seeks to achieve the best strategy that Iran could use in confronting with other partners of common fields. Moreover it seems to find the best strategy for Iran and other countries in cooperation and non-cooperation conditions in extraction. The results indicated that the higher is the number of countries for a common resource, the less would be the attempt of each country; however, the more will be the total attempt of countries which means more waste of attempt. At the end, partner countries in a resource are recommended to take actions to extract common resource through agreement and mutual cooperation; so that they could extract the same amount of common resources by less effort.Mon, 30 Apr 2018 19:30:00 +0100Identifying the adopted Monetary Policy Rule by the Central Bank of Iran
http://ijes.shirazu.ac.ir/article_4719_862.html
It is obvious that an optimal policy should consider main dimensions of the phenomenon that can affect the transmission mechanism of that policy. In an open economy, it is expected that variables of the foreign sector play important role in its economic behavior. Therefore, it needs that any optimal policy in an open economy to design in such a way which involves changes in the foreign sector. Due to this fact, this paper aims at assessing the monetary policy of Central Bank of Iran to find that whether this policy takes a right way or not. To do so, a DSGE model along with MCMC criteria are employed.The main result indicates that the Central Bank decision on monetary policy follows McCallum rule without any respond to exchange rate shocks.Fri, 16 Mar 2018 20:30:00 +0100Green tax effect on Iran’s health sector: A general equilibrium approach
http://ijes.shirazu.ac.ir/article_4813_0.html
Despite positive aspects of energy consumption, their negative externalities i.e., environmental pollutions, are considerable. Green taxes, paid for products and services that are not environmentally friendly, are recommended as an efficient way of improving health indices. Since, Iran is among the countries with high per capita consumption of energy, pollution can be a kind of threat. In this regard, to simulate the effect of green taxes on Iran’s health sector, we use a general equilibrium model, calibrated by Iran’s Social Accounting Matrix (SAM) in 2011. The results show green taxes reduces all kinds of environmental pollutions. Furthermore, 62% of health costs are spent on mortality, 26.4% on morbidity, and 11.6% on non-health effects.Fri, 11 May 2018 19:30:00 +0100Analysis of Electricity Generation’s Externalities on Sectorial Output Growth and Welfare in Iran
http://ijes.shirazu.ac.ir/article_4721_862.html
Environmental problems are one of the most challenging issues for the entire world and each country. In economic studies, environmental issues are analyzed as negative externalities. In this article, the negative externalities of electricity production on the output growth of different sectors and household’s welfare in Iran’s economy have been studied through price system using Computable General Equilibrium (CGE) model empirically. In this regard, Iran’s Social Accounting Matrix of 2011 and GAMS software by introducing five scenarios related to environmental effects of electricity production have been used. The results show that firstly, the internalization of electricity production externalities reduces the output of agriculture and industry sectors in all scenarios, while the output of services will increase. Secondly, internalization of electricity production externalities increases total economy’s output and declines the household’s welfare.Fri, 16 Mar 2018 20:30:00 +0100Hedonic Pricing under Uncertainty: A Theoretical Consumer Behavior Model
http://ijes.shirazu.ac.ir/article_4812_0.html
Consumer behavior is formulated by using an additive utility function and the hedonic price approach, in a virtual market. Since there is a time lag between purchasing and receiving goods and services, she makes a decision under uncertainty. A class of satisfaction of the composite commodities’ characteristics is described by a vector of their probabilities of the expected quality. Consumer choices, as well as the meaning of the equilibrium, are derived. The results show that hedonic price which implies the willingness to pay is affected by the probabilities of the expected quality or the satisfaction of the characteristics. Also, the expected marginal rate of substitution between the two characteristics of the composite commodity equals the ratio of their probabilities of the expected quality (satisfaction).Wed, 09 May 2018 19:30:00 +0100Optimal Cyclical Behavior of Monetary Policy of Iran: Using a DSGE Model
http://ijes.shirazu.ac.ir/article_4823_0.html
The countercyclical monetary policy is a policy that economists recommend to adopt in order to slow down the economic fluctuations. The aim of this study was to address the question that, in the presence of fiscal dominance and considering institutional quality (IQL), what should be the optimal monetary policy during the business cycles? To find the appropriate answer, first, in the framework of a Dynamic Stochastic General Equilibrium (DSGE) model proportional to the structure of the Iranian economy the parameters of the model were derived. Then, considering fiscal dominance and institutional quality, the optimal monetary policy during the business cycles was calculated and by using the equilibrium parameters by using data of Iran during 1991:2-016:1, it was calibrated. The results show that the optimal monetary policy during business cycles of Iran is a countercyclical monetary policy. The optimal monetary policy coefficient during the business cycles decreases by a decrease in institutional quality and an increase in fiscal dominance. Also, when the policymaker's goal is only stabilizing inflation, the optimal monetary policy is independent of the business cycles.Sat, 19 May 2018 19:30:00 +0100