Analyzing the Effects of Change in State Budget Components on Macroeconomic Variables

Document Type : Research Paper

Authors

1 Department of Economics and Accounting, Faculty of Management and Economics, Lorestan University, Lorestan, Iran.

2 Department of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran.

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 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 .

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References

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History

  • Receive Date: 19 June 2022
  • Revise Date: 29 January 2023
  • Accept Date: 29 January 2023

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