The business cycle dynamics due to the presence of financial frictions in Iran: NARDL approach

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

Rezazadeh Ali; Jahangiri Shahab; Mohseninia Roghayeh

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Iranian Journal of Social Problems Year:2023 | Volume:14 | Issue:1 Page(s): 119-152

Download Full-Text

Persian Verion

View:

Download:

Cites:

Information Journal Paper

Title

The business cycle dynamics due to the presence of financial frictions in Iran: NARDL approach

Author(s)

Rezazadeh Ali | Jahangiri Shahab | Mohseninia Roghayeh | Issue Writer Certificate

Keywords

Business Cycles

Financial Frictions

financial accelerators

Asymmetric Effects

Non-linear Autoregressive Distributed Lagged (NARDL) model JEL Classification: E22

E31

E32

G01

E43

Abstract

The purpose of this study is to investigate the nonlinear business cycle dynamics due to the presence of Financial Frictions in Iran's economy. For this purpose, a NARDL model is estimated by using seasonal data during 1991q4- 2021q3. Also, this study used of the ratio Non-Performing Loans/Total Loans as a measure of financial friction. The results of the Bounds test indicate that there is a cointegration relationship between the model variables. The results of the model estimation show that the GDP has an asymmetric behavior in the short and long term. Based on this, in the short and long term, there is a significant relationship between GDP and the ratio Non-Performing Loans/Total Loans and financial market conditions have a significant non-linear effect on the dynamics of Business Cycles. According to the results, the effects of financial friction shock on Business Cycles are asymmetric, and therefore the predictive efficiency of all linear models is questioned. Finally, this study shows that economic prosperity can reduce the ratio of non-performing loans to total paid facilities over time, and this most likely reflects the effect of prosperity on employment and business conditions, and as a result, the ability of borrowers to repay loans.

Multimedia

No record.

Cites

No record.

References

No record.

Cite

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans