IRANIAN JOURNAL OF APPLIED ECONOMICS
Year:2015 | Volume:4 | Issue:-|Papers Count:6

This paper examines the impact of government expenditures on public health and its subsequent economic changes in Iran. This study is using a panel data of 28 provinces in Iran from 1379-89 to recognize triggering changes in labor productivity.The results indicate that government expenditure on wages and salaries; expenditures on consumables; drugs for health service; bandages and so on have positive and lasting effects on labor productivity. However, government investments for infrastructure such as building of a new hospital do not show any significant effect on labor productivity. It is surprising to realize that for the period of our study; only 6.3% of economic growth was due to capital expenditure whereas the effect of current expenditure was 20 fold higher.

The present paper studies consumption pattern of the following selected items; housing, appliances & furniture, fuel and clothing, for urban households in Iran through Error Correction Model Linear Approximate of Almost Ideal Demand System (ECM-LA-AIDS) based on a co-integration approach from 1980 to 2010. The results indicate that while Iranian households suffer from money illusion, there is speedy adjustment toward long-run equilibrium in the first three markets. Comparing short-term price elasticities of demand with long-term Marshal/Hicks elasticities indicate that implementation of price control are more effective in short run. However, expenditure elasticities for all categories except clothing are higher in the long-run.

Taxation and seigniorage are known as the two major sources of revenue for financing the government expenditure. Simultaneous practice of these two methods provides a mechanism for government to finance it expenditure in the most efficient way. The choice between tax and seigniorage is influenced by two fundamental factors, namely the degree of central bank independence and political orientation of government. The goal of this study is to investigate how the dependency of central bank and the political alliance of three different administrations influenced the choice of financing decision. We further explore the effect of the financing method for controlling inflation. The period of our study is from 1989 to 2008. The findings of our study indicate that based on ARDL model there is a positive and meaningful relation between tax and seigniorage and parallel implementation would be beneficial.

The main purpose of this study is to explore how corruption in public sectors affects collection of tax between in Iran. We have used GMM models to find the impact of Corruption Perception Index on tax revenues collected from 1980 to 2010. The results show that lower corruption perception indices i.e. high level of corruption has reduced every type of tax revenues except consumption and sales taxes. We have also found that GDP per capita and the degree of economic openness are positively related to the amount of tax collected. Another finding of our study is that inflation and value added of agricultural sector are negatively related to all tax revenues.

The goal of this paper is to examine the impacts of E-commerce and the level of human capital on labor productivity in industrial units with ten or more employees. Our sample is made of 39 factories with four digit ISCI codes. Using Cobb-Douglas production framework and the accelerator principle, we estimated the labor productivity from 2006 to 2010 and found that electronic purchases have a significant negative effect on labor productivity, while electronic sales have no effects. Human capital was also shown to be positively related to labor productivity.

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators. Present study uses panel data for elaboration of Iran’s performance in improving human development index in MENA region. Our results show that Iran’s success rate to improve its position is 88% and through more efficient allocation of resources the HDI index may improve from 0.702 to 0.837.