Public Economics
Naser Olfati; Mahbubeh Delfan; Mohamad Alizadeh; Sohrab Delangizan
Abstract
the purpose of this study is to investigate the effects and consequences of financial policy instruments on macroeconomic variables according to their usage .in order to provide a comprehensive analysis of the above - mentioned works , a dynamic open dynamic general equilibrium model with respect to ...
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the purpose of this study is to investigate the effects and consequences of financial policy instruments on macroeconomic variables according to their usage .in order to provide a comprehensive analysis of the above - mentioned works , a dynamic open dynamic general equilibrium model with respect to the household , agency , government , and central bank is designed to fit the characteristics of iranian economy in which households are considered as two categories : Ricardo and nonRicardo .in the financial sector , government expenditures have been divided into three parts : cost of goods , public goods and construction costs and also government tax revenues as financial instruments are divided into three categories : tax rate tax rate , tax rate and tax rate on capital .the structural parameters of the model were estimated using seasonal data of 1399 - 1383 .the results of the model simulation show that the increase of a tax rate in order to finance government expenditures depends on the nature of government spending ( current or construction ) and the goal of nonpolitician so that if the goal is to provide the current expenditure and the government is willing to reduce the consumption and production costs , then it is necessary to increase the rate of tax on consumption or the rate of tax on investment .
Public Economics
Elham Khorasani Kordeh Koohi; Reza Najarzadeh
Abstract
Wagner's Law states that the relative size of public sector increases with the growth of per capita income. This study examines whether there is empirical evidence that Wagner’s law holds in the Iranian economy using time series annual data over the period 1985-2018 in Iran, applying cointegration ...
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Wagner's Law states that the relative size of public sector increases with the growth of per capita income. This study examines whether there is empirical evidence that Wagner’s law holds in the Iranian economy using time series annual data over the period 1985-2018 in Iran, applying cointegration and vector error correction modelling (VECM) techniques. In particular, this study provides a special focus on examining the validity of the versions of Wagner’s hypothesis, which supports the existence of long-run relationship between public expenditure and economic growth. The results of the estimates demonstrate that this law holds in Iran. The elasticity of the government expenditures with respect to national income must be greater than one for the Wagner’s law to hold. However, government’s spending on health and education has been less than expected. Therefore, considering all the government’s spending, Wagner's law is valid in Iran. On the other hand, by examining government expenditures in health and education sector as the most important part of the government expenditures, it is seen that the revenue elasticity of government expenditures in the health and education sectors is less than one. Accordingly, our estimates for Iran do not confirm this law. Although the absolute size of the public sector grows when the income increases, its rate of growth in these sectors is substantially lower than the growth of income. This could suggest that the government does not pay enough attention to health and education sectors and that these are not priorities of the government.
Majid Maddah; Azadeh Talebbeidokhti
Abstract
Abstract: The aim of international economic sanctions is imposing economic restrictions on target countries. In order to decrease the sanctions negative brunt on citizenry and make it ineffective, government may respond to sanctions through policies such as increasing the supply of public goods. This ...
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Abstract: The aim of international economic sanctions is imposing economic restrictions on target countries. In order to decrease the sanctions negative brunt on citizenry and make it ineffective, government may respond to sanctions through policies such as increasing the supply of public goods. This paper studies the regime changes of government expenditures in Iranian economy in response to economic sanctions using Markov-Switching model during period of 1978 to 2014. The results from estimated specified model indicate that firstly total, constructive and current expenditures in response to sanctions follow Markov-Switching pattern. Secondly, total, constructive and current expenditures in response to sanctions raise, and this finding confirm using public goods as defensive tool to contrast sanctions in Iran.
