SIMULATION OF CORRUPTION EFFECTS ON ECONOMIC GROWTH IN IRAN

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SAMETI MORTAZA; EMADZADEH MOSTAFA; RAESI DEHKORDI SHAHRAM

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Paper Information

Journal: Journal of Quantitative Economics Year:2012 | Volume:9 | Issue:2 (33) Page(s): 49-69

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Information Journal Paper

Title

SIMULATION OF CORRUPTION EFFECTS ON ECONOMIC GROWTH IN IRAN

Author(s)

SAMETI MORTAZA | EMADZADEH MOSTAFA | RAESI DEHKORDI SHAHRAM | Issue Writer Certificate

Keywords

CORRUPTIONQ1

ENDOGENOUS GROWTH MODELQ2

PUBLIC GOODSQ2

BENEVOLENT GOVERNMENTQ2

Abstract

This article has developed a Ramsey type model of economic growth in which the engine of growth is public capital accumulation. Public capital is hired by the government for producing public good and services that used as input in aggregate production function. This provides the justification for the existence of the government. BENEVOLENT GOVERNMENT, seeking to provide an efficient level of inputs for production function, is to be competitive so that public and private marginal product of capital is equal. In a self-seeking government CORRUPTION is defined as monopoly rents extracted from the private sector through the supply of the public inputs. Rantier government income is defined as the deference between the government's revenue for the supply of the public inputs minus the cost of providing the public inputs.Theoretical result showed that in steady state both per capita consumption and output and growth rate are higher in the benevolent case instead of rantier government. Empirical results of growth model simulation in Iran economy demonstrated that with deferent level of government inefficiency in a transitional dynamic from rantier to BENEVOLENT GOVERNMENT may increase the growth rate from 1.2 to 2.6 percent.

Cites

THE IMPACT OF OIL DEPENDENT POLITICAL ECONOMY ON IRAN’S NATIONAL SECURITY

References

SIMULATING THE ECONOMIC GROWTH IN IRAN USING UZAWA-LUCAS MODEL WITH DYNAMIC OPTIMAL CONTROL

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APA: Copy

SAMETI, MORTAZA, EMADZADEH, MOSTAFA, & RAESI DEHKORDI, SHAHRAM. (2012). SIMULATION OF CORRUPTION EFFECTS ON ECONOMIC GROWTH IN IRAN. JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW), 9(2 (33)), 49-69. SID. https://sid.ir/paper/110848/en

Vancouver: Copy

SAMETI MORTAZA, EMADZADEH MOSTAFA, RAESI DEHKORDI SHAHRAM. SIMULATION OF CORRUPTION EFFECTS ON ECONOMIC GROWTH IN IRAN. JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW)[Internet]. 2012;9(2 (33)):49-69. Available from: https://sid.ir/paper/110848/en

IEEE: Copy

MORTAZA SAMETI, MOSTAFA EMADZADEH, and SHAHRAM RAESI DEHKORDI, “SIMULATION OF CORRUPTION EFFECTS ON ECONOMIC GROWTH IN IRAN,” JOURNAL OF QUANTITATIVE ECONOMICS (QUARTERLY JOURNAL OF ECONOMICS REVIEW), vol. 9, no. 2 (33), pp. 49–69, 2012, [Online]. Available: https://sid.ir/paper/110848/en

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