JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)
Year:2002 | Volume:1 | Issue:4|Papers Count:8

The studies on Iran economy emphasize unified and adjustable exchange rate regime,particalarly the Crawling Peg,as well as the coordination of other policies.After brief reviw of the above studies and previous experinces,a theoretical model on the basis of insulationpropertyapproach ispresented.Since policy goal(loss functioni)n this research is taken as the variance of output and price,every regime that has the least variance of output and price is considered as optimal. Oil, governtment budget policy and wage shocks,as the most important real shock in the economy of Iran.influencing output and price.have been taken into consideration in the theoretical model.The model including aggregate supply and demand,and total level of priceand wage,has been solved for the loss function.This model has been estimated on the basis of information about Iran during1352-78. Using the estimated structural coefficients the loss function has been simulated at different scenarios. The result of these simulations is that at the present state of economy, the Crawling Peg regime may not be an optimal one.But in order for the regime to be performed with tthe least cost(the least variance of out put and price),all of the following conditions have to be satisfied:(1) the exchange rate IS adjusted biannually; (2) the monetary policy is coordinated witht the exchange rate regime;(3)the monetary policy is completely credible; (4)the income policy is successfulplly performed wher upon wage shocks are reduced:and(5) difference of the total level of domestic and foreign pricesis reduced at half.As long as all the above conditions have not boon sctisfiod, the fixd the exehang rate regime is optimal in stabilizing out put and price.

In this paper we will show that the employers seeking to hire workers are never sure of their actual productivity. What they have learnt is that there is a firm relation between the worker"s education and his productivity. Educated workers are generally more reliable, more consistent and more trainable. So employers believe that higher wages belong to those with higher productivity. The "screening hypothesis" questiorls the causal link, arguing that education is "associated" with increased productivity, but does not "cause" it. The screening hypothesis argues that education gives a signal to prospective employers, and distinguishes the high productivity workers. Our purpose. in this article is to criticize the validity of the screening hypothesis. and to show why the strong form of the hypothesis does not hold.

Economic growth and development depends on various factors. but labor and capital have very important roles in improvement of this case. To analyze the long-run relations and co-integration between labor and capital in agricultural sector of Iran. we have used 1966-96 time series. For stationary testing of time series. the ADF method has been used. and the results revealed that both of variables are non- stationary and integrated of order (1). Both of ARDL and Johansen approaches indicated that, there is a positive long-run relation between two variables. Then. to connect the short-run fluctuations by long-run equilibrium, Error Correction model was used. The results showed that, the rate of adjustment is low, but it leads to long-rune quilibrium.

The survey on Iran"s potential tax capacity indicates that there is a considerable gap between potential tax capacity and the collected taxes. By adopting suitable strategies aimed at improving the existing tax system, we can increase collected taxes and decrease dependence on oil. in this regard, we can point to Value Added Tax (VAT), as an Instrument of proper tax collection. which is considered by more than 90 countries in the world. The Initial introduction and implementation of VAT brings about different economic effects, which can be classed as three major groups: 1) Inflationary Efects 2) Distributional Effects 3) Income Effects The present paper concentrates on inflationary impact of Value Added Tax on economic sectors of Iran. The results of this study indicate that out of 78 economic sectors, 36 sectors show weak price sensitivities, 13 sectors have middle price sensitivities. and 29 sectors exhibit severe pnce sensitivities (first scenano). The study suggests that economic sectors with severe price sensItivity (29 sec.)in the first scenario- and all sectors which receive inflationary effects more than or equal to 10.1% (34 sec.Un the second scenano - should be exempted Finally we can state that 36 sectors can certainly be helo liable to value added tax. and 8 sectors, depending on expected tax income from the 36 taxable sectors are either taxed or tax exempt. The overall inflationary impact of ten percent tax rate, would be 13.5% before, and 12%, after exemption.

Estimation and determination of housing price in urban areas is very important for urban planners and policy and policy makers. This estimation can have significant value for a broad range of urban policy making and planning, if it can measure and reflect the exact share of each housing component. Non-homogenity of housing and influences of housing components in its price has increased the application of Hedonic Price Method (HPM) during the last two decades. In this paper the impact of different housing charactristics on house price have been derived using logaritmi, double logaritmic and Box - Cox functional forms. A Sample of 12320 urban households based on the expenditures and incomes survey in urban areas carried out by Iran Statistical Cent er has been used.

Sustained development in water sector is possible if a comprehensive view in water management is undertaken. Comprehensive management. in turn has the responsibility of regulating relations of water sector with sociai and economic development. Demand management along with managing the provision and development of water resources can be regarded as the major concerns of comprehensive water mangement. Today purposes and missions for management of water resources and missions relating to the provision and development of water resources are, to a large extent, known. Nonetheless. little is known about demand management of water. Demand and provision management both enjoy equal importance and must be considered together in planning schemes. Demand management is a complementary link to the mangement of provision and development of water resources. As such, it mainly sets forth and discusses consumption methods, equipments necessary for better utilisation, and patterns of water consumption. Water demand management has several tools at its disposal for implementing Its policies and for achieving its aims. This paper points to the one of the most effective aspects of demand management. that is the economic one. It suggests pricing and tariff as tools for demand management. In the present study, which was performed for five water regions in Tehran city. water demand function derived from Stone-Geary utility function has been estimated using collected data during the years 1375 to 1379 (Iranian calendar) from 400 random samples taken from all subscribers at these five regions. Water demand function has been estimated for the whole Tchran city: inside usages. non-inside usages in five regions, for four seasons and five consumption blocks. Maximum water required and extra usages in each of the aforementioned cases have been calculated. Based upon the research findings. although price elasticity for demand of water in Tchran is low. yet by logical increment of prices it is possible to decrease some of the extra usage. To use the incomes resulting from these increments in prices toward new investments, to restore transfer lines and, to apply cultural tools. are all other methods for decreasing water loss and improving consumption pattern.

The major objective of the present paper is to specity and estimate an econometric model,exploring relationship between domestic demand for flat steel products and its main explanatory variables.It focuses particularly upon the behavior of domestic function for this type of steel products,as an intermediate good affected by relative prices and income changes,through the estimationof a log-linear econometric mode lover the period of 1951-1998. Estimation results obtained by the econometric methods are reliable and applicableThey indicate that there is a negative relationship between domestic demand fort steel products and relative prices. but a positive relatoinship between demand and activity income variable.But the results reveal that demand for flat steel products is quite inelastic with respect to the relative prices while being elastic to the income changes over the period under consideration. Finally, according to a singificant positive coefficient for the relative price of aluminum,this commodity is introduced as an appropriate substitution fo rthe flat steel products. Overall,the implication of the study may lead poicy makersto consider a crucialrole for steel products in the process of economic development.

Environmentael economics plays a key role in application of instruments for management of natural resources, evaluation of economic importance of environment and finding the economic causes of environmental deterioration and provision of required economic incentives for slowing down or hopefully stopping this deterioration trend. All these are within the activity span of environmental economics The Protective Policies of environment can be exerted by means of economic instruments such as subsidies and taxes, deposit systems and tradeable pollution permits and legal instruments such as standards, and also by means of instruments of voluntary participation. This paper considers the application of taxes and subsidies in reducing the pollution of industris in Tehran Province.The conclusions indicate that if the collection system of taxes is more effective, then tax instruments (input tax, product tax, tax on production process,tax on dissipated substances)can play an important role in reducing the pollution of Tehran in dustries.On the other hand,it is necessary to consider subsidy payment in the form of unilateral aids or assigned facilities to industries where upon provisions such as installation of treatment systems and other related equipment are not possible.The fore-mentioned facilites increase the incentive of purchase and setting of pollution control equipment and will give way to total pollution reduction.