JOURNAL OF APPLIED ECONOMICS STUDIES IN IRAN
Year:2019 | Volume:8 | Issue:30|Papers Count:11

One of the major challenges governments are facing in the 21st century are environmental crises. Detection of destructive factors, measuring the costs degrading the environment and managing their deteriorating factors play an important role in maintaining this unique wealth. The main objective of this study is to measure the energy efficiency and final cost of reducing carbon dioxide in urban areas of Iran's provinces. This study was carried out using time series data gathered between 2006 to 2016. According to the Ministry of the Interior of the Islamic Republic of Iran’ s classification, each province of the country fits into exactly one of the five specified regions. Regions defined based on neighboring factors, geographic location, and commonality. This research has been done using mathematical modeling programing. The results of this research illustrate that the average energy efficiencies of regions 3, 2, and 5 are above the average energy efficiency of the total regions of the country and regions 1 and 4 average energy efficiencies are below that. The 3rd region with the efficiency of 0. 93 has the highest, region 4 with a score of 0. 61 has the lowest energy efficiency and region 1 has the highest carbon dioxide emission in the regions. The 3rd with the highest energy efficiency has the lowest carbon dioxide emission. The average relative price of carbon dioxide emission in all regions is 21. 5 ten thousand Rials per ton. The average shadow value of the pollution in all regions based on the desired product is 194. 4 ten thousand Rials per ton.

From the monetary authority perspective, all parts of fluctuations in CPI don’ t have the same importance for implementing monetary policy and also don’ t have the same impact on economic growth. The CPI fluctuations can be separated into two main parts: the permanent part and the temporary or transient part. In the long run the changes in relative prices which are originated from temporary shocks, because of price flexibility and substitution of goods by consumer, will be adjusted and as a result will not have significant effect on Inflation and economic growth. Consequently, monetary authority should not take into account the temporary part of CPI fluctuations in implementing the monetary policy. Some economists assert that it will be better if monetary authority implements the policies just based on the core inflation. In the present study, we have first calculated the core inflation and then investigated the effect of core inflation on economic growth. To this end, we have used the data over the 2005-2018 period and MIDAS method. Results indicate that financial depth, core inflation and oil revenues have negative and significant effect on economic growth. Also, results show that openness, government spending on infrastructure, capital stock and active population have significant and positive effect and employment permits have no significant effect on economic growth

Investigating the effect of the exchange rate on economy and the responses of monetary policy to shocks under incomplete exchange-rate pass-through (ERPT) is one of the main issues in Iranian economy. The exchange rate has a significant effect on inflation and terms of trade, and it transfers the effects of different shocks through import prices and the consumer price index to the whole economy. The exchange rate has an absorber or amplifier effect on shocks, playing an important role in implementation of monetary policy. But the important thing is that the rate of absorbing or raising depends on the exchange rate pass-through. Therefore, the exchange rate pass-through is significant in terms of monetary policy performance. The present study first examines the incomplete exchange rate pass-through effect on Iran economy and its implication on monetary policy under the framework of a Dynamic Stochastic General Equilibrium model, and then it analyzes the effect of different degrees of pass-through under terms of trade and export productivity shocks on Iranian economy. The results indicate that terms of trade shock leads to increase in total product, none tradeable product and CPI inflation and it also decreases oil product. on the other hands, export productivity shock increases total product and oil product and decreases none tradeable product and CPI inflation. The analysis of the effect of different degrees of an Iran economy shows that: the higher degree passthrough decreases effect of exchange rate volatility on imported inflation and CPI inflation, and also in these conditions the effect of the monetary policy of the exchange rate channel on economic variables is reduced. In addition, the incomplete exchange rate pass-through will reduce the impact of shocks on the economy. In other words, the exchange rate with incomplete pass-through absorbs some of the effects of shocks.

Economic volatility has been decreased over the past three decades in the world especially in type of GDP growth, as known the "Great Moderation” . There is no agreement on the causes of this. But there are three categories of causes: the good luck, good policy and structural changes hypotheses. The purpose of this research is evaluate the three hypotheses in the form of the relationship between the real GDP volatility, monetary policy index, the structural change indicator, exchange rate and oil revenues during the period of 1352-1396 in Iran. This research is using a structural vector autoregressive model (SVAR) with application of the Blanchard-Quah (B-Q) restrictions. According to the results, the impact of the monetary policy index on the volatility of production is 0. 971, the impact of the financial liberalization is 0. 1, and the revolution and war is 0. 978. The effect of monetary policy shocks on production volatility is 0. 971 which is more than two factors of good chance (oil revenue fluctuation 0. 831 and exchange rate of 0. 587) and structural change effect (capital inflow) of 0. 002. Therefore, all three categories of factors affect production volaility in Iran.

Creation, developing and strengthening of institutions, affects international trade and is prerequisite for it. Explaining of the process and channels of the influence of different types of institutions on the trade between the countries and quantifying of the Impact of Institutions on international trade, on the basis of scientific methods, has a particular importance, which has been studied in this paper. In this study, the effect of economic freedom and good governance institutions, as second and third levels of institutional analysis from the Oliver Williamson social analysis fourth levels theory, on the trade between a group of leading Asian countries in knowledge-based economy, using the gravity model and the method of panel data at 2005-2014 has been investigated. According to the results of the research, institutions are influential on trade and affect through important channels, such as competition and competitive advantage, human capital, productivity and transaction costs, on the between countries trade. The estimated model's shows that the effect of good governance and economic freedom on the trade between the countries has been positive and significant. According to the results of the estimated model's, 1 percent increase in economic freedom index in the exporting and importing countries, their trading value has increased by 3. 78 percent and 3. 49 percent respectively. The trading value of the exporting countries, has increased by 0. 933 percent, as a result of 1 percent increase in good governance, as well.

Statistical evidence of energy carriers (which are used in the production of goods and services and final demand components) indicates that their consumption in Iran is higher than the average in the world and is less energy-efficient, so demand side management (DSM) is essential. Among DSM methods, improving energy efficiency is an important approach in the global economy. Assuming an improvement of 5% efficiency of energy carriers, the purpose of this paper is to provide (1) Estimating the total rebound effect (RE) of the economy and its decomposition by product and final demand (2) decomposition RE of the manufacturing sectors by the substitution and output effects. Methodology based on a two-stage approach, including the analysis of the economic RE on the segmentation of the manufacturing sectors and final demand, as well as the decomposition of economic sector's RE on the substitution and output effects. The results show that the overall economic RE for coal, gasoline, diesel, electricity and natural gas is 34, 30, 26, 23 and 18 percent, respectively, so that expected energy savings are not achieved after energy (especially coal, gasoline, diesel, electricity and natural gas) efficiency improvement. The results indicate that the most energy-dependent parts also had the most RE. Also, the findings show that, in the short term, economic firms, in order to have the most benefit from improving the efficiency of energy carriers), use a substitution approach between energy carriers (including coal, gasoline, diesel, electricity and natural gas) and other inputs, and development of production capacity is transferred to a long period of time.

The complex structure of the conversion of raw material into the product makes it difficult to create a match between the input and the output in the manufacture industry. Such firms can conceal a part of their sales despite the VAT system. The main motivation of the firm in such a move is to evasion from profit tax. The purpose of this study is to model this type of tax evasion. By simulation of the model variables and using the Monte Carlo method, a distribution for tax capacity, official tax and tax evasion were formed. The research finds that 40 percent of government tax revenues in the manufacture industrial sector disappear in the form of tax evasion. The share of calculated tax evasion is related to VAT, which is not imposed on the firm, but because of informal sales, the taxes related to the added value created in the production and distribution sector are not transfer to the government. The sum of the tax evasion value is 4. 2 percent of the revenue of the manufacture industries.

Fossil energy is one of the most important inputs in the production process of manufacturing enterprises. Industrial enterprises manufacture their products with the mixture of energy and the other inputs and sell them in markets. Hence, understanding the fossil energy demand and its determinants along with the other policies on energy demand can play an effective role in economic decision process. The industrial, agricultural and transportation sectors are the major energy consumers in Iran. Energy can be divided by fossil energy (such as kerosene, gasoline, natural gas and the other petroleum products) and non-fossil energy (such as electricity, sun and wind energy). Nowadays, most of industrial firms use fossil energy as well as electricity for light and production process. The policy of each firm is also to use optimal energy in its production process. The main purpose of this research is the study of kinds of fossil energy on demand of manufacturing sector of Iran over the period 1982-2015. The most important variables which affect the demand for fossil energy in the industrial enterprises are fossil prices, electricity price, the value-added of production and the physical capital. In Iran, the manufacturing sector is the third sector of house-made, commercial and transportation, sectors, and the natural gas consumption is increasing instead of oil products and electricity. The estimation technique of this paper is Auto-Regressive Distributed Lag (ARDL). Thus, the impacts of capital stock, the real price of electricity, and the real prices of various fossil energy in industrial sector in short-run and long– run. The result of this research show that fossil energy price elasticity in the long and short run is elastic in the manufacturing sector of Iran. Thus, the price policies are effective in industrial enterprises demand and they can lead the consumers to use the optimal energy in the production process.

Although the importance of the financial sector in economic growth and development has been shown by numerous studies, but which financial structure can lead to economic growth, different results have been achieved from previous studies. This difference, on the one hand, is rooted in the structure and conditions of each country, and on the other hand, the impact of financial structure on economic growth can be different at different times (such as the period of boom and stagnation). Therefore, considering the necessity of conducting such a study for the Iranian economy using the appropriate techniques that achieve this goal, in the present study, with the introduction of bank-oriented and market-oriented financial structure, the effect of each one on Iran's economic growth has been studied using the Markov-Switching nonlinear technique for seasonal data during the 2001: 4-2014: 4 period. The results showed that there is a statistically significant relationship between the financial structure of the country and economic growth, so that in a recession, the bank-oriented financial structure has a more effective effect than the market-oriented financial structure on GDP growth of Iran. Therefore, it can be recommended that economic policy makers and economic planners in the periods of recession can shift the firms financing needed towards banks and, in the periods of expansion, get help from the capital market as an arm of financing of firms. In addition, in all economic conditions, it is necessary to pay attention to the improvement of the financial sector of the economy.

Energy as one of the main factors of production has an important place in economic activities. The limitation of energy sources and the environmental pollution problem due to the excessive use of energy resources (especially fossil fuels) has necessitated the efficient and optimal use of energy and has led to the emphasis on energy efficiency in policy and most energy sector studies in the world. In this study, the effect of energy efficiency on the value added of economic sectors of Iran during the period of 1991-2016 was carried out in two sections; In the first section, the frontier Translog function was estimated the allocation efficiency of the inputs with the aid combined observation with use of the Stata software 13, that was calculated the aid first-order condition of minimizing the cost. In the second part, using the GLS method was evaluated the effect allocation efficiency of energy inputs on the added value of economic sectors. The results of this study showed that the allocation efficiency of petrol and fuel oil have a positive and significant effect on added value of the economic sectors with coefficients 0. 1016747 and 0. 3700357 respectively. Also, the allocation efficiency of electricity, kerosene and gas oil has a positive and significant effect on the added value of the economic sectors.