ECONOMIC ASSESSMENT OF GASOLINE SUBSIDY AND ITS IMPACT ON INFLATION IN IRAN: AN EMPIRICAL STUDY (1971-2004)

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KARIMI SAEID; JAFARI SAMIMI A.; MEHNATFAR Y.

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Journal: JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH) Year:2007 | Volume:7 | Issue:1 Page(s): 43-57

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Title

ECONOMIC ASSESSMENT OF GASOLINE SUBSIDY AND ITS IMPACT ON INFLATION IN IRAN: AN EMPIRICAL STUDY (1971-2004)

Author(s)

KARIMI SAEID | JAFARI SAMIMI A. | MEHNATFAR Y. | Issue Writer Certificate

Keywords

INFLATION RATEQ3

GASOLINE SUBSIDYQ3

SIMULTANEOUS EQUATIONS SYSTEMQ3

3SLSQ3

GASOLINE CONSUMPTIONQ3

Abstract

The purpose of the present paper is to analyze the economic impact of GASOLINE SUBSIDY on INFLATION RATE in Iran. To do so, we have used time series data for the period 1971-2004 to estimate a system of simultaneous equations by three stages least squares (3SLS) method. The results show that during the period under consideration, reducing the GASOLINE SUBSIDY in order to set the cost-accounting price will not have a major impact on inflation in Iran. Therefore, it is suggested that the government uses policies in order to fulfill the goals of Iran's fourth economic development plan as well as twenty-year economic outlook. As a result of applying the recommended policies we will hopefully witness the better performance of the economy especially the reduction in GASOLINE CONSUMPTION.JEL Classification: H25

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APA: Copy

KARIMI, SAEID, JAFARI SAMIMI, A., & MEHNATFAR, Y.. (2007). ECONOMIC ASSESSMENT OF GASOLINE SUBSIDY AND ITS IMPACT ON INFLATION IN IRAN: AN EMPIRICAL STUDY (1971-2004). JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), 7(1), 43-57. SID. https://sid.ir/paper/86479/en

Vancouver: Copy

KARIMI SAEID, JAFARI SAMIMI A., MEHNATFAR Y.. ECONOMIC ASSESSMENT OF GASOLINE SUBSIDY AND ITS IMPACT ON INFLATION IN IRAN: AN EMPIRICAL STUDY (1971-2004). JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH)[Internet]. 2007;7(1):43-57. Available from: https://sid.ir/paper/86479/en

IEEE: Copy

SAEID KARIMI, A. JAFARI SAMIMI, and Y. MEHNATFAR, “ECONOMIC ASSESSMENT OF GASOLINE SUBSIDY AND ITS IMPACT ON INFLATION IN IRAN: AN EMPIRICAL STUDY (1971-2004),” JOURNAL OF SUSTAINABLE GROWTH AND DEVELOPMENT (THE ECONOMIC RESEARCH), vol. 7, no. 1, pp. 43–57, 2007, [Online]. Available: https://sid.ir/paper/86479/en

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