JOURNAL OF ECONOMIC MODELING RESEARCH
Year:2011 | Volume:1 | Issue:3|Papers Count:9

A Dynamic Stochastic General Equilibrium (DSGE) Model is developed to study monetary business cycles impacts of volatilities of oil revenue and money supply on macroeconomic variables in Iran. The results show that 0.15 percent deviation from the trend of steady state inflation is explained by changes in oil revenue when it is accompanied by change in money aggregates. However, if such changes in oil revenues are not financed by the central bank, inflation deviates only by 0.1 percent. The results reemphasize the fact that money is neutral in a non-sticky price framework and only affect output and employment by 0.05 and -0.01 percent respectively.

The aim of this paper is to consider the effects of monetary policy on production and prices through asset price channel (the housing price index) in Iran during 1368Q1 to 1387Q4. By Vector Error Correction (VEC) Model, the effect of monetary policy has been considered through this channel. In general, the results show that the debt of banks to the central bank as instruments of monetary policy through the housing price index, at least in the short run could increase the production level and decreases prices. Thus central bank with given facilities to banks can directly and through the housing price index strengthen production level and control prices in the short run. Also we found that shock of the required reserve ratio in general, directly affects production levels and don’t have any effect on production level and prices through the housing price index. Therefore, in using of these tool as instruments of monetary policy, the housing price index channel in monetary transmission policy, has a little effect and only on the production.

The purpose of this article is to study the factor content of trade in Iran. To improve the trade affair, Iran needs a suitable model for production, export and import of required goods. Factor content of trade detects and amplifies it to pay. In this paper using (HOV) model and input-output (IO) we evaluate factor content of trade in different sectors in 1991-2001. The results show that Factor content of trade in 67 percent of the activities (28 sections) has been negative and 33 percent of the activities (13 sections) are positive.

The unequal allocation of economic resources, or other resources of wealth, regarding to the efficiency among the factors of production, is considered as one of the most important condition of optimal resource allocation in the market system. In other words, the market mechanism in the process of allocating resources among the factors of production rewards to the resources with higher returns. So, the article’s main question is whether the unequal distribution of votes similar to the unequal distribution of money, can be applied in the process of the optimal allocation of citizens' benefits in the democracy system?The answer of this question has been given by the monetary model which is similar to the democracy, using the concept of Anthony Downs’s (1957) rational voter hypothesis, the idea of Paul Samuelson's (1958) monetary economic model,  the microeconomic theory of consumption and just one of the major components of the market –the unequal distribution of money– Using the designed model, we can survey several statuses, Such as: vote exchange possibility (similar to the barter economy) and weighting of votes. The article’s results show that the social contract possibility for exchange and the ability to save money causes to change of the shape and nature of the money from public goods to private goods and the interest rate creation. In this situation, one of the important findings of Samuelson model of monetary is appeared in the space of voting theory. One of the contributions of the monetary model of Samuelson is that one of the origins of the monetary interest rate is population growth. The other results show that the weighting of buyers in the monetary model design under conditions can be led to more efficient choices and social welfare increase ultimately.

The investigation of determinants in Gross National Saving behavior especially effect of corruption, is one of the important issues in macroeconomics literature. For this purpose, we use the corruption perception index in dynamic panel data approach (Arellano and Bond Method). The Empirical results indicate that the corruption perception index (reduction of corruption) has positive and significant effect on the gross national saving. The main results of model estimation for two groups of oil and non-oil countries of MENA, shows that in oil countries the elasticity of gross national saving is more than of non-oil countries and reduction of corruption can be increase the national saving in oil countries. Moreover the results of model estimation shows that the inflation rate has negative effect and real per capita income and terms of trade variables have positive and significant effects on the gross national of saving in these countries.

This study investigates the effects of terms of trade shocks and international reserves on the real effective exchange rate. For this purpose is used panel data technique and data related to 20 countries for 1980- 2008 period. Estimation results show that international reserves have buffer effect in terms of trade shocks and cause terms of trade shocks have less effect on real exchange rate. Of course this result confirms in developing countries, but don’t confirm in developed countries. In addition according to results, reserve effect in reduction terms of trade shocks effect in oil exporting countries is more than other countries. Also, according to estimations in this study, increase in financial development reduces buffer role of international reserves.

Intermediate goods are another produced factor of production, like capital. Considering intermediate goods in production function makes multiplier be even larger than the one. In this paper, based on the approach of Jones (2007,2010) We computed multipliers by intermediate goods. For this purpose, we used Input – Output table of Statistical Center of Iran (base year: 2001). Finding show that 10.6% of total products used in inter- sector transaction and 4.28% used in intera-sector transaction. Therefore, the domestic multiplier is 1.383 and import multiplier is 2.117 and total multiplier is 2.929.These results indicate increase in the multiplier. The industrial sector and mining sector produce the most and the lowest share of domestic intermediate goods, respectively. The highest and lowest shares of imported intermediate goods between economic sectors are in industrial sector and water sector, respectively.

The Phillips curve usually has been estimated in a linear framework which implies a stable constant relationship between inflation and unemployment. Some of the studies claim that the slope of the Phillips curve is a function of macroeconomic conditions and also the relationship is asymmetric. This article deals with a smooth transition regression model for relationship between inflation and unemployment for Iran, during the period of 1971 -2007. Smooth transition regression model is a non linear time series regression model which could be considered as developed form of regime switching regression model. Results show that there is a negative and nonlinear relationship between inflation and unemployment in short-term. Regarding this result it's highly important for policy makers to be able to make a relationship between these two variables.

This article seeks to modeling social welfare functions, for assessment of how distribution of transfer payment among socio-economic levels. We consider providing social welfare functions two scenarios, first the each socio-economic levels receives amount of transfer payment equal to others, and second the each socio-economic levels receives that with weighted preferences. The four basic functions determine optimal value of how distribution, and then calculate actual value of that by transforming COICOP to ISIC . Finally the difference between optimal and actual values is determined for rural and urban society and for first and second scenario. At the first scenario the difference between optimal and actual value is smaller than second and this difference at rural society is greater than urban society. The other hand the welfare distribution at the former is worse than later.