JOURNAL OF APPLIED ECONOMICS STUDIES IN IRAN
Year:2019 | Volume:8 | Issue:29|Papers Count:10

Dominant economic theory assumes a positive relationship between financial development and economic growth. Contradictorily some empirical evidence shows that the strength of this relation and even its sign heavily depends on economic circumstances of each country. One of the most important determinants of finance-growth nexus is inflation. Specially, in many developing countries which have been experienced higher inflation and poor macroeconomic stability, studying the role of inflation on finance-growth nexus is crucial. This paper tests tri-variate causality among economic growth, financial development and inflation rate in Iran during 1961 to 2016 by using VECM model. Comparing two-variate and tri-variate causality tests reveals that adverse causality from growth to some financial development indicators is caused by high rates of inflation. Moreover, high stable inflation in Iran weakens the causality from some other financial development indicators to economic growth.

Firm life cycle could be considered as a determinant of business cycles since business environment factors inhibit coordination between Business forming and collapsing with the business cycles promptly. In this study, we try to append firms' endogenous entry and exit mechanism in a dynamic stochastic general equilibrium model (DSGE). Regarding previous studies, we establish a better illustration of endogenous exit. Finally, we estimate the model by using Iran macroeconomics data. The simulation results show the endogenous entry and exit affect the business cycle length and magnitude. Also, Firm Endogenous Entry and Exit in the model causes the Demand Shock, absorb in the economy by the intensive margin. It means the firm uses more inputs to produce more output. On the other hand, in responding to the supply side shock, more firm enter to business (extensive margin).

From the microeconomic perspective, housing is a commodity with consumption and capital use and is a special commodity with properties such as heterogeneity, non-substitution and immobility and as consumer goods has the largest share in the household's basket. On the other hand, housing as a commodity, can absorb a large part of the capital and liquidity of the society and lead to an increase in demand for speculation in the housing market. Formation of demand for housing capital with incentive for speculation, the interactions of this market with alternative markets and limited land resources has led to higher land prices and housing and a decline in household accessibility index. Therefore, imposing a tax on demand for housing can reduce the demand for housing and, consequently, the decline in housing prices. Ultimately, this will increase the financial strength of the household to buy housing with incentives to consume. In this regard, the purpose of this study is to investigate the effects of macroeconomic factors on the housing accessibility index in urban areas, using the dynamic panel data model over a period (2006-2016). The results indicate that the facility to purchase housing has led to a reduction in household accessibility index and increasing household access to house. Also, the tax policy applied in the housing sector has increased household accessibility index through controlling speculative demand for housing. In addition, land leverage, the price of housing replacement assets, inflation rate, employment rate, and marriage rate have been other factors affecting on household accessibility index.

Determining the structure of a market plays an important role for policy makers to adopt efficient policies to enhance social welfare of their societies. This welfare is fulfilled more and more whenever the industry is reached to a competitive framework. The Car maker industry is one of the important industries that create a considerable value added in terms of the pre and post production chains in all the countries. This industry is the second largest industry in Iran that uses about 600 thousands workers. Accordingly, this study first aims to estimate the strategies adopted by the dominant players of the industry, Iran Khodro and Saipa companies, based on a game-information theoretic framework and then measure the market power of them in accordance with the generalized maximum entropy estimator. The results show that the Lerner index value for Iran Khodro and Saipa is 0. 67 and 0. 49 respectively indicating that the two companies play an important role in the industry and the industry is so far from the competitive environment.

This paper is based on dynamic optimization methodology to investigate the economic energy efficiency issues in Iranian Economy. The paper introduces some definitions about energy efficiency both in economics and physics, and establishes a quantitative way for measuring the economic energy efficiency. The linkage between economic energy efficiency, energy consumption and capital stock is demonstrated primarily. Using the methodology of dynamic optimization, a maximum problem of economic energy efficiency over time, which is subjected to the extended Solow growth model and instantaneous investment rate, is modelled. In this model, the energy consumption is set as a control variable and the capital is regarded as a state variable. The analytic solutions can be derived and the diagrammatic analysis provides saddle-point equilibrium.

The main objective of this study is to investigate shock spillovers and volatility over the selected indexes of Tehran Stock Exchange including the automotive and parts manufacturing group, banking group and oil products group in the period of 13th December, 2008 to 21th November, 2017. In order to that, MS-VAR model and Asymmetric BEKK have used. The results showed evidence of standard leverage in both regimes, as The results in the zero-order regime indicate the interaction of the Shocks and volatilities of each group on the Shocks and volatilities of other groups, and the past volatilities of each group relative to the past Shocks of that group contributed to the current volatility of that group in the zero-order regime. The results in first regime also showed that the news of the oil products group did not have any significant effect on the volatility of the automobile group, and vice versa. While Shocks transferring between banking groups and petroleum refineries, and between automobile group and banking groups are two-way. Also, the volatility of the banking group affects the volatility of the oil products group and volatility spillovers between petroleum product groups and automobile group is one-way.

Giavazzi and Pagano 1990 and Perotti 1999 noted that the impact of fiscal policy on the consumption of the private sector varies in different economic conditions, and the most important factors influencing the consumption of the private sector can be named as the state of the economy in terms of recession or boom, as well as the amount of government debt. After the above-mentioned studies, the hypothesis of nonlinear fiscal policy effect on the private consumption was examined in different aspects. This study was also aimed at evaluating the subject matter of the study about the Keynesian or non-Keynesian nature of the fiscal policy using seasonal data for the Iranian economy during 1369-1395. In order to study the subject, non-linear integration and co-integration tests (STAR), nonlinear causality test (TGC) and asymmetric threshold vector autoregressive model have been used. The results of integration, co-integration and nonlinear causality tests showed that the co-integration and causality relationship of the variables follow a nonlinear process and the degree of integration of some of the variables used also has a nonlinear process. On the other hand, the results of the asymmetric threshold vector auto regression model showed that the taxes and the current government expenditures in the Iranian economy have Keynesian nature. But the government's current spending shows a non-Keynesian nature during the recession and has a Keynesian's nature during boom. Also, in terms of positive, negative, small and large shocks, it was also found that asymmetry exist in how fiscal policy shocks affect the consumption of the private sector during business cycles.

Considering the importance of the competitiveness on innovation, the present study examines the nonlinear impact of competitiveness on innovation with the use of the Poisson pseudo maximum likelihood (PPML) method. For this purpose, the data of Iran's industry was used according to the International Standard Industrial Activities Classification (ISIC) for the period of 2004-2014. To calculate the competitiveness index three indexes such as Herfindahl, Entropy and Inverse number of firm indicators were used. Based on the results, two Herfindahl and Entropy indicators emphasized the effect of nonlinear and U-form of competitiveness on innovation. Monopoly threshold level formed a panel regression model (PTR) that 17% was obtained for the Herfindahl index and 50% for Entropy index. Investigating the effect of competitiveness on innovation in two groups of industries that are distinguished based on technology gap Showed that industries competing on a level of technology, the motivation for innovate and escape from the competition is more. Also, The results also imply on negative effect of exit rates and positive and significant effect of technology gap on innovation.

The main purpose of this study is to review the asymmetry of exchange rate passthrough shocks on import prices with an emphasis on regime change during 1974-2016. Thus, the Hodrick-Prescott filter has been used to detect an unanticipated exchange rate and Markov switching model to regime changes. The findings of this study show that the import price in Iran follows a two-regime model, and the unpredictable negative and positive exchange shocks are asymmetrically involved in the formation of the degree of exchange rate pass-through on the import price in each of the pricing regimes. So that the effect of negative shocks is more severe compared to the same shocks. The prime cost on the production of imported goods in outside of the country, domestic demand and commercial openness also have a positive and significant impact on import prices in both price regimes.

The main objective of this article is to investigate the impact of targeted subsidies law on poverty and inequality among Self-employment and wage and salary earners in Iran. Contrary to the literature which is based on the comparison between the absolute values of indicators, this study employs the statistical confidence intervals. To doing so, we use rural and urban household’ s expenditure-income data during 2006-2017 and gini and FGT indices. Although the absolute values of indicators showed that they improve during 2012-2017 in compare to 2006-2010 period, but the results of indicators difference based on the statistical confidence intervals do not confirm this findings, for example in the years after targeted subsidies implementation, the inequality rate decreased for these two professional groups in rural areas, however, the inequality rate increased among wage and salaries earners for urban areas and there was not any significant change for self-employed jobs. Without the consideration of geographical areas, targeted subsidies aggravated inequality among wage and salaries earners. In this regard, the results of poverty indicators showed that wage and salaries earners share of total poverty is fixed in urban areas and it increased in rural areas during the fifth development plan and without consideration of geographical area, the headcount poverty and poverty gap increased for these two professional groups. Therefore, in order to correct policy-making, the judge about the impacts of policies based on the comparison of indicators absolute values is not enough and it requires more accurate investigations at the professional subgroups level.