EMPIRICAL ESTIMATION OF INFLATION TAX AND THE LAFFER CURVE SURFACES: THE CASE OF IRAN

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MOOSAVI MOHSENI REZA; NOROUZI HAIDEH

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Journal: ECONOMIC RESEARCH REVIEW Year:2011 | Volume:11 | Issue:3 (42) Page(s): 39-64

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Information Journal Paper

Title

EMPIRICAL ESTIMATION OF INFLATION TAX AND THE LAFFER CURVE SURFACES: THE CASE OF IRAN

Author(s)

MOOSAVI MOHSENI REZA | NOROUZI HAIDEH | Issue Writer Certificate

Keywords

: INFLATION TAXQ2

LAFFER SURFACEQ2

CAGAN FUNCTIONQ2

INFLATIONQ2

RESERVE RATIOQ2

Abstract

This paper investigates the INFLATION tax. Laffer Curve surfaces of INFLATION tax have been estimated in Iran, using time series data for the period 1961-2006. Considering the high INFLATION ratio of iran during the last three decades, it is hypothesized that iran operates in fourth region of the Laffer curve surface. In this research, Cagan’s money demand function is used. Also, we consider an explicit role for the RESERVE RATIO and it introduced INFLATION and required RESERVE RATIO as locus of instruments which maximize the INFLATION tax. Results of this survey show that Iran operates in right side of the Laffer curve surfaces (region I) and INFLATION tax maximize at the highest INFLATION rate.

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APA: Copy

MOOSAVI MOHSENI, REZA, & NOROUZI, HAIDEH. (2011). EMPIRICAL ESTIMATION OF INFLATION TAX AND THE LAFFER CURVE SURFACES: THE CASE OF IRAN. ECONOMIC RESEARCH REVIEW, 11(3 (42)), 39-64. SID. https://sid.ir/paper/67336/en

Vancouver: Copy

MOOSAVI MOHSENI REZA, NOROUZI HAIDEH. EMPIRICAL ESTIMATION OF INFLATION TAX AND THE LAFFER CURVE SURFACES: THE CASE OF IRAN. ECONOMIC RESEARCH REVIEW[Internet]. 2011;11(3 (42)):39-64. Available from: https://sid.ir/paper/67336/en

IEEE: Copy

REZA MOOSAVI MOHSENI, and HAIDEH NOROUZI, “EMPIRICAL ESTIMATION OF INFLATION TAX AND THE LAFFER CURVE SURFACES: THE CASE OF IRAN,” ECONOMIC RESEARCH REVIEW, vol. 11, no. 3 (42), pp. 39–64, 2011, [Online]. Available: https://sid.ir/paper/67336/en

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