Journal of Iran's Economic Essays; an Islamic approach
Year:2006 | Volume:3 | Issue:5|Papers Count:7

Applying financial accounting, Ministry of Agriculture (Jihad Keshavarzie) determines the price support schedule (PSS) of each strategic agricultural product like wheat for-per unit of land under cultivation in a year, then, to be approved, announces it to Economic Council (EC). In this paper, based on statistics presented in financial accounting report, theoretical equation of wheat PSS is simulated whether considering subsides of chemical fertilizer and pesticide or not. Major parameters included in equation of wheat price support such as rate of profit, inflation, insurance charge, bank interest and rent of land are considered as government recourses for policy making. Wheat price support, consistent with government future policy would be predicted by any change happens in these parameters.The most variable of the above - mentioned equation is sum of basic costs in production. Costs here consist of machine performance, workers wages, transportation and basic inputs of   agriculture such as seed, water, pesticide and chemical fertilizers. So, optimum combination of each one and the importance of their participation in this process play an important role in determining wheat effective price. Using an effective price support in a correct way will not only make farmers living conditions better off, but also, will cause an increase in wheat production which in turn reduce imports and help government save foreign currency, strengthen  independence, secure non- vulnerability in international relations and achieve economic independence in providing strategic agricultural products like wheat.

This paper mainly focuses on evaluating economic effects of subsidized gasoline on its consumption in Iran. Using time series data for the period of time "through 1971- 2003", simultaneous equation model is estimated applying I3SLS. Evaluating results indicate that there has been a positive and striking relationship between gasoline subsidy and consumption: An increase about 1% in subsidy has increased the consumption about 0.69%(percent). Each consumption and subsidy equation explains approximately 99% (percent) of the consumption and subsidy flexibility. Therefore, based on the same consumption equation, the fixed and also the least consumption become e7.5188. In other words, for an increase about 1%(percent) in gasoline subsidy, the consumption rate will increase up to 0.69% (percent). A 1% (percent) increases in gasoline consumption causes 0.77% (percent) increases in gasoline subsidy rate. To sum up, the increase in subsidy during the mentioned period is the main reason for gasoline consumption rate. Based on our findings, it is concluded that by implementing the guided subsidy policy in the Iran's 4th economic, social and cultural plan and also in the 20 years economic outlook package through reduceing consumption, using effectively and saving financial resources by government, we can expect more favorable economic impact.

Economists and government authorities have been paying special attentions to the factors affecting economic growth with it; they are going to achieve high and firm. economic growth. Based on some studies, inflation and its destructive effects are known as cutting edge in this regard. So, analyzing the relationship between inflation and economic growth is an important case study which researchers tend to concentrate on. Through four sections, this paper with an emphasis on Iran's economy is going to study interrelationship between two above - mentioned variables through 45 years (1959 to 2004). The main presupposition, here, is the existence of non- linear relationship between inflation and economic growth in the mentioned period. In regard to attributes of Iran's economy, the model which has been designed here, relies on Barro, Alexander and Sarel models. We have estimated the model by econometric techniques (with and without lags). Various thresholds are considered for the inflation rate. Considering the variables in this regard, the CLS method is applied to evaluate the model. Through reduction of errors square roots, it is a criterion for picking effective inflationary threshold up. During the five years study, it shows that: 1- for low levels, there is a unilateral and causal relationship between inflation and economic growth, 2- for medium levels; the relationship between inflation and economic growth is sort of positive relationship Gust up to 26 percent for a period), 3- For high levels, all inflation rates, above 26 percent, do have neutral and then negative impact on economic growth, 4- Finally, based on Gringer testing model, it is shown that there is a significant relationship from inflation to growth.

Foreign Direct investment is at the cutting edge of economic growth and development, filling the saving -investment gap and providing countries with both technology and modern techniques of management. The article, here, deals with striking factors which affected FDI in Iran through 1959- 2003. The results of the studies approved that FDI depends on: capital recovery rate, political rights, infrastructures, natural resource availability, corruption and bureaucratic red tape, human capital, inflation, exchange and tax rate, market expansion, economic growth, productivity, domestic investment and openness of the economy. The evaluation of the presented model shows that: 1) natural resource availability, human capital and infrastructures have a direct and positive impact on FDI in Iran, 2) political rights and dummy variables of Islamic republic of Iran have affected Iran's FDI significantly as well as conversely, and 3) openness of the economy has positive and insignificant influences and the ratio of government expenditure to GDP has insignificantly and indirectly affected FDI.

Through this research paper, the efficiency of 141 Mazandaran branches of Bank Saderat in 2004 is evaluated using Data Envelopment Analysis which is a linear programming and non parametric method. The variants considered here are categorized into two groups consisting of; inputs (number of staff, terminals and book value of branches), and outputs (weighted sums of deposits, the average of 12 months of private sector facilities (loans), and adjusted deferred claims.That hypothesis in which more than 50% of bank Saderat branches are inefficient has been analyzed. There, it is indicated that how the branches can receive the frontier of efficiency by modifying their inputs or outputs.The study shows that 70% of branches are inefficient, whereas the varying return scale is different from the constant return scale. Misallocation of personnel in branches is known as an important factor for inefficiency. To Make the branches more efficient, we must economize on using resources (Inputs) at least to 36%.

Introducing the transaction cost economics (TCE), the article, as its main concerns, tries to explain the method of making the concept of transaction cost operational and applying it in empirical studies. In this paper, the writer tries to provide some answers to these questions: How do followers of institutionalism and transaction cost economists use this concept in practice and empirical studies? And basically, do they have any coherent method to deal with subject matters of economics or that institutional approach is only story telling?New institutional economics (NIB)are divided into two main areas; institutional environment and institutional arrangement. TCE is related to the institutional arrangement and Williamson has related it into governance structure. Coase's article entitled "The Nature of the Firm" is the beginning of this approach which emphasizes the firm must be considered as a governance structure, rather than a production function or a technological construction. TCE tends to make the concept of transaction cost operational and for achieving this purpose, uses the idea of firm as a governance structure and develop "discriminating alignment" hypothesis.