Iranian Journal of Economic Research
Year:2009 | Volume:13 | Issue:38|Papers Count:9

The paper examines industrial concentration in Iranian food products and beverages industries using firm level data aggregated to the 4-digit ISIC industry level between 2002 and 2004. Based on different concentration indices, the average level of concentration has increased slightly for the period of study. The empirical results show that increase in the level of concentration is more likely in industries that are more profitable. The results also show that initial capital requirement has positive and significant effect on the likelihood of changes in the level of concentration in the selected industries. Factors such as size, advertising intensity and R&D intensity do not have a significant effect on the probability of changes in concentration.       

Social discount rate is an important variable for the Cost-Benefit analysis. Commonly used discount factor in applied works is exponential discount factor. However, exponential factor has some problems: 1- Determining factors of discount rate and their impacts are varying in time. 2- Empirical and experimental evidences suggest that different individuals and groups of people discount far future with rates lower than early future. 3- If the discount rate were uncertain, it can be shown that the discount rate is decreasing in time. In this paper, we show that the problems can be mitigated by relating the discount rate with hazard rate. That relation can be established using project life probability distribution or its beneficiary’s mortality rate. In this paper, the discount factors of different statistical distribution of projects life are introduced and applied to some countries and Iran. The results show the hazard rate in Iran and India are higher and mean project life are lower than other countries in the sample. 

This paper analyzes a macro-micro linkage using a vector autoregressive model (VAR) for Iran comprising following variables: Gross Domestic Product (GDP), Inflation, Exchange Rate, Oil Revenue, Government Expenditure, Money Supply, and a Micro-simulation model of household budget. The procedure is a top-down, macro to micro simulation, aiming at evaluating the impact of macroeconomic shocks on the Iranian rural and urban household’s distribution of income. A representative of the Iranian rural and urban households, which involves social characteristics, is linked with household budget equations. Income is a function of social characteristic and macro economic variables in the household budget model. The research work is done through three steps:First in the macro-model, variables and shocks are simulated during ten years (2006-2016). Second, in the micro-model, the incomes of the entire households are simulated after and before the shocks. Finally, the Gini coefficient index, as an inequality indicator, is calculated using the results of the second step. We have achieved the following results: GDP, inflation, weighted exchange rate and oil shocks increased inequality, while money supply and government expenditures decreased inequality for urban households. For rural households, GDP, inflation, government expenditure and oil shocks decreased inequality, while weighted exchange rate and money supply did not have any effect on inequality.

Some studies show that in recent years, despite of increase in commodity prices such as oil and steel and conducting loose monetary policy in most countries, global price levels have low and stable rates of growth and inflation rates are well below the forecasts in Iran, in spite of adopting extremely expansionary policies, inflation rate has experienced a relatively stable trend in recent years. This may be due to globalization. This study aims at explaining theoretical bases of globalization effects on inflation and then evaluating it in Iran. In this study a VAR model has been used to test globalization effect on inflation, which mostly presents short-run dynamics of inflation. Results are as follow: 1- The more Iranian economy opens to trade the less domestic business cycles affect inflation and it will have a smoother path. 2-An increase in import price acts as a supply shock in the economy and increases inflation.3- Iran's trade partner's booms and slumps transmit to Iran through trade and affect domestic inflation.

In this paper, we examine the impact of competitiveness on economic growth. We measure the competitiveness by a composite index using three indices of labor force, capital, and technology competitiueness in 57 countries for the period 1994-2003. our panel data regression results show that the competitiveness has a strong positive relationship with economic growth.

"Competition" and "monopoly" are two important issues in market structure analysis. Theoretically, monopoly structure in an industry results in distorted resource allocation, bringing about economic rents. The outcome of such market structure is the burden of social costs imposed on the users. This study shows that the insurance industry in Iran is a tight monopoly. We therefore, estimate the resulting social burden of insurance industry in Iran. The result of calculating Harberger, Posner, and Cowling-Muller indices in 2003 shows that a social cost is equal to 2.8%, 3.45%, and 3.13%. of the revenues earned in insurance industry, respectively.

This study analyse the determinants of entry and exit of Iran’s manufacturing industries defined at 4-digit ISIC level for the period 1995-2003. It employs a structure-conduct- performance model as well as macroeconomic factors to explain determinant factors of net entry. The research uses a panel data model to carry out the estimation. Findings of this study show that entry barriers and macro economic factors are important in explaining net entry movements. Entry barriers include high MES, capital requirement and barriers like intangible assets. Moreover, growth and profitability of industry absorb entrants to the industry.

In empirical microeconomics analysis, the decision making pattern of firms for the site location is very important. Additionally, regarding the lack of information in real economic situation and because of the shortage in resources, analysis of advantageous level of different regions subject to different products is necessary for guiding and encouraging private entrepreneurs and improvement of resource allocation. Thus theoretically and practically two questions may be asked: first, according to the wide range of theories in this area and specialty of each, regarding different aspects of the problem (production costs, accessibility to facilities, …) how is possible to develop a comprehensive theoretical base for practical advantageous analysis? Second, regarding this comprehensive theoretical base, in the case of Iranian provinces how is the advantageous patterns for production development in different regions (provinces)? Seeking for answers to these questions, initially we analyzed advantageous theories and tried to develop the comprehensive theoretical base. As this theoretical base emphasizes on different factors on advantageous determination, we followed up using multi-criteria decision making models, especially Weighted Numerical Taxonomy and Analytical Hierarchy Process for measuring advantageous coefficients of 33 sector in 30 provinces, using 25 important factors. The average of correlation coefficients in these two methods- NT and AHP- was 0.87 suggesting that these methods are highly substitution in advantageous analysis.

Water is a necessary and scarce good that requires new strategies for allocation and optimal use. we. Water pricing and levying suitable tariffs subject to social welfare maximization are the economic solution to this problem. In this study, we have considered available tariffs in domestic water sector of the city of Neyshabour. According to current tariff problems, new tariffs are offered by using Ramsey Model with the target of maximization of social welfare. Finally, Ramsey tariffs are modified based on two scenarios. In the first one, we incur less cost to customers with paying a subsidy about 135.5 Rial/m3/year by government. In this scenario, the minimum cost is zero for users with consumption less than 5 m3/month and the maximum cost is 1216 Rial/m3/month for users with consumption more than 30 m3/month. In the second one, losses related to low income group’s paying are compensated by high income users. So, minimum cost is zero for users with consumption less then 5 m3/month, and maximum cost is 1980 Rial/m3/month for users with consumption more than 40 m3/month. In these two scenarios, the water and wastewater company would be in the break even point.