IRANIAN JOURNAL OF APPLIED ECONOMICS
Year:2018 | Volume:7 | Issue:23 |Papers Count:6

Real exchange rate misalignment from its equilibrium value real is one of the controversial issues in the Iran's economy. On the one hand, by challenging the theory of purchasing power parity, the idea that the government should avoid reduce the real value of the rial and prevent transmission of exchange rate to inflation. On the other hand the damage of real exchange rate misalignment on domestic production, exports, employment, makes it as a phenomenon undesirable to be remembered. In this regard, this study is the idea that the distorting effects of the exchange rate will depend on inflationary environment, non-linear effect of exchange rate misalignment on inflation in the period 1393: 4-1360: 2 investigated. The results of the estimation model presented by Atif Ali Jeffrey (2010) by Markov-Switching approach shows that when inflation is high and the average experience strong fluctuations, exchange rate misalignment very little negative impact on inflation. But as long as the average phase is low and less volatility, increase in the exchange rate misalignment will cause inflationary pressure. So, not only excessive valuation of the exchange rate when inflation is increasing and a significant favorable impact on inflation did not. So, not only excessive valuation of the exchange rate when inflation is increasingly favorable effects on inflation are not significant, but also it is serious threat to stability and reducing inflation. The results of this study provide important policy implications.

In this study having focused on the evaluation of different roles of income and non-income factors on promoting happiness in EU countries, it is shown that income increase can only cause happiness promotion up to a particular critical point which, in its own turn is also decided by non-income factors. However, when the critical income point is reached extra increase in income may lead to Pareto inefficient allocations, and thereupon to people happiness decrease. The main goals of this study are the following: Determining a social comparison rate between income and happiness in different countries of the European Union and estimating their respective equations of the critical income level. The pattern under study has been estimated using the non-linear least squared method for the period of 2001 to 2010. The results indicate positive and significant effects of some specific factors such as personal income, hope, rule of law and political stability and also negative and equally significant effect of some others such as number of patients suffering from HIV, number of people with incomes lower than 60% of the society average income on happiness. On the other hand, these results take society s relative income in to consideration as well. The study s calculation also shows that all of the member countries in the European Union are placed on the upper happiness limit.

Under inflation condition, the investors are always looking for investing in assets which are maintaining the real value of money and also have appropriate returns. Fisher brought up for the first time that nominal returns are equal to the sum of real returns and inflation. In this study, the Fisher hypothesis for the assets such as stocks, gold and foreign currencies (US dollars) is examined for Iran’ s economy over the period of 2000 to 2014. Unlike previous studies established based on the short and long-term, the present study has examined the mentioned hypothesis by using wavelet analysis for eight different periods. First, the time series of inflation, the growth rate of stock returns, the growth rate of gold prices, and the growth rate of dollar have been decomposed by using the wavelet method, which its result are eight new time series for each variable, so that each time series is the representative of a time period. Then, the Fisher hypothesis has been examined for the same time period of inflation and the asset by using the ordinary regression function analysis. The results indicate that investing in the stock and dollar in the very short-term and very long-term and investing in gold in medium-term are appropriate hedges against inflation.

One of the most important factors that weakens and renders tax policies ineffective is complexity and ambiguity in regulations. This problem undermines the efficiency of tax policies. In order to guarantee the effectiveness of the taxation system, regulations should be comprehensively defined and guaranteed. In this regard, the main objective of this paper is to analyze the effect of regulatory burden on tax revenue in selected middle income countries. Results from model estimation, using the Generalized Method of Moments and Random effect in selected middle income countries in the period 2003-2013 shows that regulatory burden has a positive and and significant effect on tax revenue in selected countries. Improving the Regularity Quality will lead to a reduction in market disruptions, the establishment of new economic enterprises, increased incentives for entrepreneurship, improved labor quality, increased investment and increased private sector activity. Improving regulatory quality will also increase efficiency and reduce administrative and financial corruption and reduce barriers to tax revenues. Therefore, streamlining regulations, removing personal perceptions of them, and creating harmonized, easy and understandable regulations for everyone to increase tax revenues is a fundamental requirement.

In this paper, meanwhile analyzing the poverty rate through the absolute poverty line (Rial equivalent of $ 2 per person per person) for urban households of Iran, the short-run and long-term relationship between the effects of oil revenues on economic poverty in Iran is discussed. The study period is 1358-1394 and the method of analyzing is Autoregressive distributed lags model(ARDL). The main finding of this study is that in the long-run, every one percent increase (decrease) in oil revenues leads to a 1. 43 percent increase (decrease) in the poverty rate of urban households. This is in line with economic ideas about the relationship between oil revenues and poverty in developing countries. Another finding of this study is the negative impact of the real GDP per capita without oil and the positive distribution of income on poverty.

Studies on stock fluctuations have become the core of many researches in last few decades. As the nature of the assets in Iran is different with other countries, stock markets are one of the options which investors can avail themselves for optimizing asset portfolio with different returns. This study aims to examine the return’ s convergence of 15 stock markets in Iran from May 2009 to February 2016, using Nahar-Inder and Beta methods. Since an investor always seeks higher profits, a market with higher returns will be selected. Unlike the previous methods, which studied the convergence at different points in time, Nahar-Inder method studies the markets’ convergence through time-series through higher investments in markets with high returns. These markets’ returns will approach the average returns, which called returns convergence. The result of convergence directions in the assessed stock markets, based on Beta method, leads to the divergence of the stock market returns. The results showed that the returns resulting from the stocks of banks and credit institutions, industrial companies, metal mining industries, chemical products, oil products, and cement are converged to average returns. The coefficients related to the above converging market returns are statistically significant at p <. 01. However, the markets for base metals, telecommunications, automobile and spare parts, technical and engineering services, pharmaceuticals, transport industry, computer market, mass construction, and food products did not converge to average returns.