Journal of Iran's Economic Essays; an Islamic approach
Year:2004 | Volume:1 | Issue:2|Papers Count:6

Different economic schools have for long been discussing the relationship between money and price introducing different definitions of inflation on the basis of their particular views. However, it can be said that most of the economists unanimously believe that inflation in the long run is a monetary phenomenon. Iran has experienced different rates of inflation in the period between A.D. 1961-1998 A.H. (solar) 1340-1377. Several extensive studies were made in Iran to analyze this issue, most of which concentrated on monetary approach. In this paper we, too follow the monetary approach in our discussion of the subject relying on the recently introduced P Model Method. Velocity and output gaps and the occurrence of financial innovations and major developments in money circulation (velocity) were used in making this study. First we try to apply the performance of the standard P model in Iran. Then the extended p* model, in which both domestic and foreign price gaps are considered, will be examined. The Results of the study show that the domestic price gap cannot explain the inflation in Iran. The reason is that because velocity is unstable, it depends on volatility of exchange rate. Also, the output gap does not play a significant role in various versions of their inflation models. On the other hand, aggregate price gap and foreign price gap explain our inflation clearly and it can be said that foreign price gap has a crucial role in defining inflation.      

Throughout the world, People refer directly or indirectly to hospitals. As a result of the growth in urbanization, the living standards have improved, but some diseases have emerged too. The hospitals need to meet the increasing demands of people and. their frequent and random visits. This issue has been considered in Iran in resent years and the present article tries to address it. It reveals the determinant factors on hospital production function using cross section data of 287 selected hospitals in Iran for 2001 in the context of an econometric pattern. The results show that the number of physicians, nurses, and hospital beds are the main factors affecting the production function of hospitals services and the final productivity of nurses are the most important factor.      

This study is a critical review of locus's paper (1990) on international capital mobility. The key question that he addresses is:" Why does capital not flow from rich to poor countries?" The author deals with the subject by critically reviewing Lucas's work, and his choice of model and analytical objective, and tries to investigate crudely the necessary issues which were either neglected or did not receive due attention, such as: reverse human capital, inconsistent rules and regulations, and high investment risks in poor countries. Finally, in addition to the concluded remarks, primary suggestions are made with respect to reduction of political risk, development and application of proper rules to prevent money laundering and financial corruption…      

There are several indices based on which the member states of the Organization of the Islamic Countries (OIC) can be classified in attracting foreign direct investments. Some of the more important ones are gross domestic product (per capita or its growth rate), inflation rate, trade openness index, wage rate index or unit labor cost  (ULC), the ratio of savings to gross domestic product, the ratio of foreign debt to gross domestic product, average tariff rate, the ratio of government expenditure to gross domestic product, the Gini Coefficient (an income distribution indicator), the ratio of domestic investment to gross domestic product, time laps in foreign investments, exchange rate variability, political stability index, foreign investment risk index, economic freedom index, globalization index, regionalism index and other factors impacting foreign investment attraction. In this article an attempt is made to classify the member states of the Organization of the Islamic Countries, OIC, based on their ability to attract foreign direct investments, FDI. In so doing, economic, social and political indices affecting FDI were introduced and then by using the Numerical Taxonomy technique this classification was done. The results indicate that Iran is in the thirty fifth places among forty three countries.    

The amount of investment in any economy depends on a number of invariables one of the most important of which is the security of investment. The amount of investment and the causes of lack of security for investing can be viewed from two sides: 1. The objective approach to security in which attempts are made to underline the objective invariables which indicate how efficient the institutions responsible for maintaining security are. 2. The subjective approach to security in which attempts are made to realize the degree of security in a country, the causes of lack of security, the influence of each of these causes on marketing in general. In order to be able to form an idea about all this, the actual investors are interviewed. The logical idea of investigating security through this approach is to provide investors with a subjective view of how safe it is to invest so that they can decide without feeling worried. The article is mainly concerned with the factors of insecurity of investment in Iran in the light of the report written by international organizations. It discusses the conditions of marking in Iran and the degree of risks in it. The account which the report introduces is mainly based on the second approach.      

Utilitarianism - that, according to the many economists, is one of the most basic foundations of common economics - and also pareto criterion - that, coincided with it, is basis of many economic decisions - are counted among important factors of environmental pollutions. According to in sufficiency of common economic solutions that are used to prevent environmental damage, to be administered of value doctrines of economic system of Islam in society can provide suitable background for preservation of natural resources and environment.