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Information Journal Paper

Title

Fiscal Policy of Iran`s Economy in a DSGE Model (Focusing on Non-Ricardian Households)

Pages

  551-580

Abstract

 This paper designs a medium scale dynamic stochastic general equilibrium (DSGE) model for Iran`s economic. According to the model, it is distinguished that taxation rule combination has a significant role in Fiscal Policy effectiveness. In order to show the combinations, several distortionary taxes are used, which are the rate of labor income taxation, the rate of capital taxation and the rate of consumption taxation. A government expenditure shock affects both Ricardian and Non-Ricardian consumption. The results of simulation reveal that the shock reduces the consumption of Ricardian Households for a short time then, it rises to higher than the stable one. Non-Ricardian Households reduce their consumption for several periods and when income increases, they start to increase consumption, too.

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  • Cite

    APA: Copy

    HAGHIGHAT, JAFAR, Habibzadeh, Amin, & MOHARAM JOUDI, NAZILA. (2017). Fiscal Policy of Iran`s Economy in a DSGE Model (Focusing on Non-Ricardian Households). TAHGHIGHAT-E-EGHTESADI, 52(3 ), 551-580. SID. https://sid.ir/paper/11815/en

    Vancouver: Copy

    HAGHIGHAT JAFAR, Habibzadeh Amin, MOHARAM JOUDI NAZILA. Fiscal Policy of Iran`s Economy in a DSGE Model (Focusing on Non-Ricardian Households). TAHGHIGHAT-E-EGHTESADI[Internet]. 2017;52(3 ):551-580. Available from: https://sid.ir/paper/11815/en

    IEEE: Copy

    JAFAR HAGHIGHAT, Amin Habibzadeh, and NAZILA MOHARAM JOUDI, “Fiscal Policy of Iran`s Economy in a DSGE Model (Focusing on Non-Ricardian Households),” TAHGHIGHAT-E-EGHTESADI, vol. 52, no. 3 , pp. 551–580, 2017, [Online]. Available: https://sid.ir/paper/11815/en

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