Journal of Economic Research
Year:2007 | Volume:- | Issue:79|Papers Count:12

This paper studies the symmetrical relation between the underground economy and taxes in Iran using the most appropriate method for measuring this relationship applying the error-correction model. According to the results directed taxes have much more effect on the underground economy in the long-run and the indirect taxes are the more effective in the short-run. Moreover the underground economy shows a symmetric response to the direct tax changes but not to the indirect tax changes. The symmetric reaction of the underground economy to the changes of direct tax in Iran implies that taxpayers show symmetrical tendency to tax evasion when direct tax increases and enter to the formal economy when the direct tax decreases.

Risk & Return are Two Major issues for investors. CAPM is used in order to quantify between Return &Risk. In this Model the only factor affecting "Return" of the Stock is systematic risk (BETA). Other factors exist that affect on the return of the stock. Fama & French introduced Multiple Model by adding to variables BE/ME ratio and firm size as two variables that has a Meaningful effect on Return of the stock. In this research, three factors "Market", "Firm size" and BE/ME Ratio are investigated on Return of the stock in Tehran Stock Exchange (T.S.E) Results show that Market factors, size and BE/ME ratio are three significant factor's on T.S.E. And the use of Multiple Factor can better illustrate the decompression of stock Returns.

Macroeconomics studies the level of activities in a country. These activities are based on four factors: household, firm, government, and foreigners. In the good and service market demand for the above factors are C, I, G, and X-M respectively. In this market goods demanded by consumers are divided in two categories of durable and nondurable goods. Consumers pay two kinds of expenditure for these goods. The first expenditure is fixed expenditure. Fixed expenditure is paid by the consumers regardless of any consumption. The expenditure of purchasing a car is an example of a fixed expenditure. The second kind is the variable expenditure. Variable expenditure is in direct relation with the consumption and increases when the consumption level increases. Expenditure of fuel, insurance, and repairs are examples of variable expenditure. Consumers always use a ratio of fixed and variable expenditure as criteria in purchase and consumption of durable goods. Our objective of this research is to estimate of willing to pay for gasoline price, and we use CVM method. Contingent valuation method is a survey method in which respondents are asked how much they are willing to pay for the use or conservation of natural goods. In this research, for Appling CVM, we have asked 1100 consumers car in seven big city that are Tehran, Isfahan, Mashhad, Shiraz, Ahvaz, Tabriz, and Karaj. The important conclusion is willing to pay 2140 rials for every liter gasoline if the price of car decreases 30 percentages.

Real exchange rate is one of those factors whose misalignment from equilibrium and volatility will affect the performance of macroeconomics and economic growth in particular. The present article is an empirical study of the undesirable effect of these two phenomenas of exchange rate system on macroeconomic growth of Iran during 1959 up to 2004. To do this, I use GARCH model to estimate the volatility index of real exchange rate, and also I use three criterias, to measure the amount of real exchange rate misalignment. An estimation of the model of Iranian economic growth through different indices indicates that volatility and the real exchange rate misalignment have a negative effect on Iranian economic growth.

There are quite number of researches in the area of convergence either at countries level or at the regions. Among them there has been limited number of researches for the MENA region. In this paper we are using the Nahar and Inder's (2002) technique in order to test the convergence of the nonstationary process for the MENA countries for the 1975-2002 periods. This has been done to investigate the possibility of convergence of these countries to the leader country -Japan- and the reduction of the income gap between these countries and Japan. In our analysis there has been special attention to Iran and the path taken so far.

This paper concerns pondering on Rational Choice Theory, especially in its acclaimed orthodox form, and inspecting its theoretical disposition in mainstream economics. Accordingly, through some particular methodological discourse, we attempt to seek the inner shortcomings of this theory. In this case, we bring forth for discussion the necessity of considering new analytical methods which has been proved to be efficient in modern social theories; Hence, hermeneutical analysis would be in the centre of our attention and we will try to present a critical outlook and innovative standpoints on Rational Choice Theory.

This paper investigates the Value at Risk (VAR) for Tehran Stock exchange using, four GARCH- type models, including GARCH (1,1), GARCH, Risk Metrics, and GARCH with optimal number of lags, Because most return series show fat-tailed distribution, we also consider the models with t-distributed errors. The results show that these types of models are quite successful in modeling average and variance of and estimating VAR for the retune series data. Risk Metrics outperforms the other models in modeling the data and estimation of VAR, regardless of the distribution of the errors. We, finally, provide a ranking of the indexes in terms of their VARs.

Internet markets like the application of the other Information Technologies result in decreasing cost and increasing efficiency. Sellers have lower costs and higher profits and also consumers with more information can experience better choices and cheaper shopping. Therefore, it seems that the growth of markets on the internet is as an indicator of improved competition. Nevertheless there are specific characteristics of the internet that could increase monopoly in internet markets. In this paper the presence of monopoly in internet markets is studied from different aspects with emphasis on network externalities. The results show that the presence of network externalities produces monopolies in internet markets. Also competition in internet markets involves R&D-races aimed at capturing market share through innovation or retaining market leadership by creating new innovations. It could be concluded that monopolistic market structure in internet market (in contrast to traditional monopoly markets) does not decrease consumer surplus, rather consumer surplus will increase through creation of innovations

This paper represents an attempt to assess the relevance of Ricardian Equivalence in Iran. The hypothesis may be interpreted as a generalisation to the short and the long run of the theories which put no weight on the real effects of public policies on aggregate demand. The tests are based on reduced-form consumption functions and on the Euler equation approach. According to the Ricardian Equivalence theorem prediction, our empirical finding show that government borrowing in Iran leads to an increase in household savings. However, the increased private savings do not completely offset increased government debt. In other words, contrary to the Ricardian Equivalence theorem, households to some extent perceive government debts as net wealth and consequently increased their consumption. The papers results indicate that it would be wise to reject the Ricardian Equivalence hypothesis in Iran. This behavior can be thought as being the result of liquidity constraints faced by households and also myopic behavior due to uncertainty regarding the future path of taxes.

The purpose of the present article is to recognize the competitiveness of the industry and determining the vulnerable industries and offering guidelines for logical supporting the competitive industries and adopting preventing and precautionary measures and policies for reducing the probable damages. For achieving this goal we have utilized the Revealed Comparative Advantage (RCA) and the value of the exports and the imports as well as the products of each industry within the context of the 4-Digit level ISIC. The obtained results show that those industries producing chemicals materials and other non-metallic products, foodstuffs, textiles, wears, leather, shoes and initial metallic products on basis of the above mentioned criteria have been accorded more relative priority over the other sectors during the negotiations about joining WTO. Logical planning for supporting these industries and making them influential for public information through mass media by the government will pave the way for structural changes in the Iranian industry for further concordance and compliance with the requirements of the world markets and the modifications made in the WTO during the period of joining.