JOURNAL OF APPLIED THEORIES OF ECONOMICS
Year:2016 | Volume:3 | Issue:3|Papers Count:8

The main purpose of this study is to analyze the stability of OPEC, based on approach of Danielsen's sacrifice ratio and the impact of Iran economic sanctions. For this purpose two concepts called the reserves sacrifice ratio and the capacity sacrifice ratio on Danielsen model framework have been used for investigating the stability of OPEC. Relationship between sacrifice ratios and variables such as population, gross domestic product (GDP), production and oil production capacities of all members of OPEC have been reviewed and analyzed. Iran sanctions as an important factor influencing on amount of sacrifice ratios and totally OPEC stability have been studied. Period of study has been chosen from 2000 to 2014. The results of this study show that during the examined period, there is a meaningful and negative correlation between population and sacrifice ratios. There is a meaningful and positive correlation between oil reserves and sacrifice ratio too. OPEC countries with large oil reserves have a tendency to restrict extraction of crude oil reserves. There is a meaningful and positive correlation between Iran economic sanctions and sacrifice ratio. Iran's oil production capacity has been reduced due to sanctions against Iran and consequently sacrifice ratios of reserves and oil capacities have been increased. According to results of this research there is no evidence to suggest OPEC collapse. As a result of this study, OPEC still considered a stable organization.

The aims of this study is to estimate the resilience and economic vulnerability indicators. Vulnerability is a structural features that increase the weaknesses of a system during adverse shocks. Economic resilience is defined as the ability of economic policy of a country to withstand in the face of shocks and recover from the effects of them. Also this paper economic resilience and vulnerability index for OPEC member countries for the period of 1995 to 2013 is estimated. Using the method of multiple causes, multiple indicators (MIMIC) and using the method of maximum likelihood, resiliency and vulnerability index was estimated. After estimating the number of models, among them top models according to compatibility with the theoretical foundations and the significance test by fitting indicators were selected coefficients. The results show that Iraq, Angola, Libya and Nigeria have high vulnerability and the UAE, Qatar, Kuwait and Saudi Arabia affected are low. Iran's Net Index rating resiliency and among the 12 OPEC members is equal to 6.

In economic literature and especially in international economy literature, Feldstein and Hori Oka puzzle (briefly: F-H puzzle) has special consideration. According to F-H puzzle, in countries which have high international capital mobility, there is a positive but weak meaningful statically correlation between investment rate and domestic saving rate. We investigate threshold impact of saving rate on investment rate in selected developed and developing countries during 1995-2012 due to experiment F-H puzzle. We used Panel Smooth Transition Regression (PSTR) Model in order to study F-H puzzle in these countries. The results of linear relationship test strongly confirm nonlinear relationship between variables of the paper. According to the estimate results, threshold limit of saving calculated (for developed countries: 17.8 and for developing countries: 32) and slope parameter (Transfer Rate) also accounted (for developed countries: 0.1 and for developing countries: 10.3). In developed and developing countries saving rate has positive and meaningful statically effect on investment growth in both regimes. However in developing countries saving rate has less [positive and meaningful statically] effect on investment growth than developed countries. Paper results reject F-H puzzle in both developed and developing countries.

Most manufacturers are not involved with direct sales to consumers and sell their products through dealers and distributors. Determining the optimal location and number of dealerships to provide a service or product is one of the most important stages of firm's planning and is of utmost importance. The available location choice models are based on simplified assumptions such as linear city and one or two firms. The main objective of this paper is theoretical modeling of dealerships location and expansion of location choice models in such a way that its assumptions are closer to reality and could provide the necessary conditions for selection of optimal number of dealerships and optimal distribution of their location. For this purpose, Chen and Riordan (2007) and Lijesen and Reggiani (2013) models are used. The results indicate that the optimum number of dealers is a function of the number of streets, reserve price of consumers for each unit of goods, transport costs, the number of consumers located on every street and costs for creation dealership. Based on the results, if the costs for creation dealership are relatively high and transport costs is relatively low, then monopolist will agree for creation of a dealer on the city center and several dealers in the margins. In contrast, if the number of consumers located on every street is relatively small and number of streets is relatively high, then the monopolist will create a dealer in the city center.

Temporary and permanent income shocks are the most important determinants of household’s consumption. According to Friedman's permanent income hypothesis, household consumption always responds to permanent income shock more than temporary shocks. Given that these two components shock separately are unobservable, in this paper we use Blanchard-Quah method to decompose the income shocks into temporary and permanent and then by applying Structural Vector Auto-regression model to identify the effect of that two shock components on household's consumption in Iran during the 1974-2014 years. The results from the estimated model confirm the validity of the PIH in Iran. So that household consumption almost entirely explained by permanent shocks income. But it does not show sensitivity to temporary shocks.

Due to the nature of the assets in Iran, markets such as exchange rate, gold, housing and stock are options facing investors as asset portfolio, although each of them has different returns. Usually, investors are looking for higher returns and focus of investors on markets with higher returns may reduce returns of this kind of markets in the long run. This can be named as returns convergence of different asset markets. This study aims to also examine the returns convergence of dollar, euro, coins, housing and stock markets in Iran over the period 2002:05-2016:02, using Nahar and Inder method and convergence Measurement of each market's returns to the average returns of them. Based on the results, the returns convergence of housing market was not significantly meaningful. Also, there was no evidence of convergence in the returns of other studied markets.

This study, offers a Goal Programming model for optimal allocation of provincial budget resources in order to achieve macroeconomic and social goals of country include unemployment and income inequalities reduction and production and employment and social capital increasing. The designed model determines optimum proportion of provinces in budgetary resources in order to achieve goals. Empirical results based on ten provincial indicators include the unemployment rate, GINI coefficient, literacy rate, internet penetration rate, economic participation rate, the province proportion of domestic production and the province proportion of industrial, mining, services and agricultural value added, show that, there is relative convergence in distribution of proportion in public budget resources, and also achieving goals in the more developed provinces needy higher levels of the budget proportion of the province of the less-developed. Therefore, in order to achieve more balanced development and regional convergence and the elimination of inequalities and spatial heterogeneity and financial recommended the allocation of budgetary resources to less developed provinces must be increase and the budget proportion of the provinces converges.

This study uses DEA non-parametric approach (Data Envelopment Analysis) to measure the environmental efficiency of 16 Iranian electric power companies during the period (2010-2014). The proposed approach incorporates not only the output separation (desirable and undesirable) but also the input separation (energy and non-energy). This study discusses some non-radial models) slack based measure, Slack based measure based on directional distance function, Range adjusted measure) and compare them with other previous DEA radial models (CCR, Directional distance function) used for the performance evaluation of electric power companies. After the methodological comparison, this study applies the proposed approaches for measuring the environmental efficiency of Iranian fossil fuel power generation. The results show that Kerman and Khuzestan electric power companies belong to a high level of environmental efficiency and the worst performers are Sistan and Baluchestan and Fars companies in term of fossil fuel power generation. Finally, we can conduct a rank sum test based upon their ranking scores to obtain a statistical inference. We find two economic implications. One of the two implications is that no major change has occurred in the operational performance of Iranian electric power industry from 2010 to 2014. The other implication indicates that there are strategic differences in the operation of Iranian electric power firms after the liberalization.