Journal of Iran's Economic Essays; an Islamic approach
Year:2006 | Volume:2 | Issue:4|Papers Count:8

This paper provides a theoretical model in which the firms within a processing industry behave in an oligopolistic and oligopsonistic market simultaneously. The model developed yields an equation for profit margin influenced by determinants of marginal processing cost as well as distortions in both markets. By pooled cross section and time series data, the equation is estimated for eleven sugar factories involved in Tehran Exchange Market over the period of 1996-2003. Applications for both markets indicate that with an increase in both the input share and output share, it causes an increase in the profit margin; however, it reduces due to increasing in wages fuel and energy costs. With competitive oligopsonistic market, the collusion degree initiated by Clarke and Davies (1982) in oligoppolistic market is estimated. It turns out that the collusion parameter is lower and negligible since price elasticity of demand is a faction for the quasi price elasticity, but by considering only quasi price demand elasticity, the degree of collusion is estimated to be higher.

In three - last decades, one of the economic issues of Iran has been "Deduction of money value". To stand against the unpleasant consequences of deduction of money value, the theory of compensating for the deduction of money value through indexing debts was propounded in Iran, based on Islamic jurisprudential and economic reasons. Subsequently, annexing a note to article 1082 of civil law and granting bank interest by calculating rate of consuming goods and services inflation has introduced according to law. Considering analytical and contrastive method, the article, first, evaluates Islamic jurisprudential and economic theory of compensating for deduction of money value, then, practical problems, come out of applying this theory in Iran's economy are discussed here. This research article hypothesized that indexing would not be an appropriate method to compensate for deduction of money value because of practical and theoretical reasons.

The aim of this study is to assess the role of Total factor Productivity (TFP) growth, Labor growth and physical capital growth on the Iranian Industrial and mines Sector growth by applying production function during the third, fourth and fifth development plan ( 1963- 1977) and the first, second and third economic, social and cultural development plan of Islamic republic of Iran(1989-2004). The main findings are as follows:The sources of the Industrial and mines sector growth order of Iranian economy in the period of third, fourth and fifth development plan before the Islamic revolution of Iran (1963-1977) are physical capital, labor and TFP growth rate respectively. 2- The sources of Industrial and mines sector growth order of Iran in the period of the first, second and third economic, social and cultural development plan of Islamic republic of Iran (1989-2004) are physical capital, TFP and labor growth rate respectively.3- TFP growth, labor and physical capital productivity growth and Industrial sector value added growth has experienced sever fluctuating for the period of 1963-2004.

Fixing Price and its related policy is an important issue which is discussed not only in jurisprudential and traditional texts, but also in economics. With an emphasis on interdisciplinary approach, the article tends to consider government fixing prices of goods and services from the epistemological jurisprudence & economics perspective. Even at the situation of monopoly and hoarding up, the government is not authorized for fixing prices, as the article tries to focus on. To come up with the discussion and achieving a comprehensive understanding over it, nature of price and its position in economic system is also considered here.

Natural law, according to many of western intellectuals, are dominant rules over human and creation, those which are impossible to be interchanged and have created for human happiness. It is leaved, finding them out, up to human. To balance relationships in society, government and statue should be based upon natural law. Justice may be defined as: moderation in affairs, equal opportunities among same people, moderation in mental power, self- controlling over anger, lust and distributing works based on talents. Muslim Intellectuals believe that the whole universe is based upon moderation and every thing is placed in its own position. They all receive their real right and do their own obligation. Justice is the task of performing talents. Every entity accepts different forms. In this case, justice refers to this point that it is the right of every thing to receive perfect, nice, stable and efficient form. Human soul is composed of various faculties. Moderation in various faculties of human soul is called justice. A moderated soul is the scale of justice. It can measure the real value of every entity and place it in its own position.Social balance forms on the bases of natural differences of people, ownership based on work, real social and individual necessities, principle of benevolence, and principle of utmost  productivity. Justice is the fundamental of existence, the manifestation of "divinity", putting everything in its own position, and granting him divine gifts according to his talents. It moderates, overlaps and perfect all the entities. Human life would survive and perfect by doing justice. Justice means moderation in tendencies, interests, feelings, inclinations, behavior and human relationship with god and nature. Fair is the one who have moderate spiritual faculty and one of (his or her) instincts or faculties do not overwhelm the other.

In contrast with other source of energy, electricity besides having great importance in production and consumption, plays an important role in economic & social decision - making process. During last years, the variations procedure of residential electricity use has an increasing scale. Through 1977 to 2001, total residential use of electricity in Khuzestan province had increased tenfold and annual use of every subscriber increases threefold. The article tends to estimate residential electricity use demand based on studies from 1951 to 2002 in Iran and those in other countries through 1978 to 2000.Both long and short run equations are estimated by (OlS) (ordinary least squares) method and ECM (error correction model) method in turn. Time series, considered in this article, are between 1988 and 2001. In this study, Time series are stationary, moreover estimated models consist with classical hypothesis. Regression of the model shows that long-run price elasticity is -0.97 and long-run income elasticity is 1.22, in short - run, they are -0.22 and 0.54. Gas as a substitution for electricity has negative coefficient in the model, therefore, the less the price of gas, the more the electricity use and then, both gas & electricity will be used simultaneously.One of the reasons may be rising of temperature in buildings because of using gas for cooking, boiling water or using lamps (which produce heat), and thereafter, using air - conditioning and cooling appliances to lower the temperature in hot months of year (about 7 months). These are the most using electricity appliances. Comparing income and price elasticities of residential electricity demand in Khuzestan province, it can be concluded that electricity demand is affected by price and income policies Income policies have more influence than price policies.