REAL BUSINESS CYCLE EMPIRICAL PATTERN AND ANALYSIS OF LABOR POLICY IN IRANIAN AGRICULTURAL SECTOR (WITH EMPHASIS ON THE AGRONOMY SUBSECTOR)

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HOSSEINI SEYED SAFDAR; NAEIMIFAR A.

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Journal: Iranian Journal of Agricultural Economics and Development Research Year:2009 | Volume:40 | Issue:1 Page(s): 11-19

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Title

REAL BUSINESS CYCLE EMPIRICAL PATTERN AND ANALYSIS OF LABOR POLICY IN IRANIAN AGRICULTURAL SECTOR (WITH EMPHASIS ON THE AGRONOMY SUBSECTOR)

Author(s)

HOSSEINI SEYED SAFDAR | NAEIMIFAR A. | Issue Writer Certificate

Keywords

REAL BUSINESS CYCLE THEORYQ3

VECTOR AUTO REGRESSIVE MODELQ3

REAL WAGEQ3

SUPPLY SIDE SHOCKSQ3

AGRICULTURE WORK FORCEQ3

Abstract

The REAL BUSINESS CYCLE THEORY was applied to investigate the hypothesis of cyclical agreeable treatment of REAL WAGEs, for men and women work force, in the Iranian agricultural sector for the period of 1971-2006. On the basis of this theory, the impacts of SUPPLY SIDE SHOCKS (productivity and oil income shocks), are anticipated on the fluctuations of the REAL WAGEs. The dominant effect of SUPPLY SIDE SHOCKS in determination of cyclical fluctuations of REAL WAGEs is confirmed by the single equation estimation and the use of Kydland and Prescott pattern (1990) in interpretation of correlation coefficients. Impulse response functions show that the supply shocks increase REAL WAGE and employment in the short run while decreasing them in the long run. In the short run, this is because of marginal product increase (productivity shock) and external income increment (oil shock), but for the long run, this is because of substitution capital for labor (productivity shock) and price increase of imported inputs (oil shock). Results indicate that, for simultaneous attainment of employment increment and poverty reduction in the agriculture sector, one should use policies that augment foreign exchange instead of productivity increasing ones.

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APA: Copy

HOSSEINI, SEYED SAFDAR, & NAEIMIFAR, A.. (2009). REAL BUSINESS CYCLE EMPIRICAL PATTERN AND ANALYSIS OF LABOR POLICY IN IRANIAN AGRICULTURAL SECTOR (WITH EMPHASIS ON THE AGRONOMY SUBSECTOR). IRANIAN JOURNAL OF AGRICUTURAL ECONOMICS AND DEVELOPMENT RESEARCH, 40(1), 11-19. SID. https://sid.ir/paper/146221/en

Vancouver: Copy

HOSSEINI SEYED SAFDAR, NAEIMIFAR A.. REAL BUSINESS CYCLE EMPIRICAL PATTERN AND ANALYSIS OF LABOR POLICY IN IRANIAN AGRICULTURAL SECTOR (WITH EMPHASIS ON THE AGRONOMY SUBSECTOR). IRANIAN JOURNAL OF AGRICUTURAL ECONOMICS AND DEVELOPMENT RESEARCH[Internet]. 2009;40(1):11-19. Available from: https://sid.ir/paper/146221/en

IEEE: Copy

SEYED SAFDAR HOSSEINI, and A. NAEIMIFAR, “REAL BUSINESS CYCLE EMPIRICAL PATTERN AND ANALYSIS OF LABOR POLICY IN IRANIAN AGRICULTURAL SECTOR (WITH EMPHASIS ON THE AGRONOMY SUBSECTOR),” IRANIAN JOURNAL OF AGRICUTURAL ECONOMICS AND DEVELOPMENT RESEARCH, vol. 40, no. 1, pp. 11–19, 2009, [Online]. Available: https://sid.ir/paper/146221/en

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