Abdolsedeh Neisy
Volume 16, Issue 47 , July 2011, , Pages 185-204
Abstract
In this paper we are going to model stocks and derivatives markets by means of recent research work that can be used in Iran and explain some of the market shortages. For this, first we use Markov process properties and economic regimes phenomena for modeling underling asset price (stocks) by dynamic ...
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In this paper we are going to model stocks and derivatives markets by means of recent research work that can be used in Iran and explain some of the market shortages. For this, first we use Markov process properties and economic regimes phenomena for modeling underling asset price (stocks) by dynamic switching model regim. We then, using an American option on this asset we obtain a dynamic and new model. On the other hand, by considering the oil convenience yield of underling asset we extend a dynamic model with stochastic volatility for underlying asset for pricing futures of that asset and by some environmental changes to oil underlying asset, we will try to model the oil field-derivatives. Since in this paper we tried to introduce new models for financial markets and these models have not been used in Iran till now, we run them on some developed countries data by advanced numerical methods and MATLAB codes. Because global markets have an important effect on pricing financial quantities, it is necessary for top managers to consider these effects.
Mohammadgholi Yousefi; Mohammad hossein Ghelbash
Volume 17, Issue 53 , February 2013, , Pages 187-211
Abstract
The purpose of this paper is to determine the relative importance of economic sectors in Iran on the bases of available input output table for the year 1380(2001).Using Net Forward and Backward Linkages Approach .This approach being superior to other approaches mainly because of avoiding overestimation ...
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The purpose of this paper is to determine the relative importance of economic sectors in Iran on the bases of available input output table for the year 1380(2001).Using Net Forward and Backward Linkages Approach .This approach being superior to other approaches mainly because of avoiding overestimation and double accounting of linkages of sectors that is seen in alternative approaches. The results show that although Gross Multiplier Linkage Coefficients present commodity producing sectors such as agriculture and industry to be relatively more important, probably due to high intermediate material content of these sectors, the Net Multiplier Coefficients, however, show that service sector such as retailers, whole sellers, Hotel, restaurant, education and other service activities are relatively more important in Iranian economy contributing more to growth of other sectors. Taking into account the higher share of services in output and employment in Iran this findings show that the Net Multiplier approach seems to be a more realistic method in determination of importance of sectors in countries such as Iran.
Hasan Heidari; Soheila Parvin; Abbas Shakeri; Soleiman Feizy Iangajeh
Volume 14, Issue 43 , July 2010, , Pages 189-210
Abstract
Using a vector autoregressive (VAR) model and an impulse response analysis, this paper investigates the impact of trade openness on main macroeconomic variables including growth of output, inflation, and employment for the period 1961-2007 in Iran. More specifically, we intend to study how an increase ...
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Using a vector autoregressive (VAR) model and an impulse response analysis, this paper investigates the impact of trade openness on main macroeconomic variables including growth of output, inflation, and employment for the period 1961-2007 in Iran. More specifically, we intend to study how an increase in the degree of openness affects these main macroeconomic variables. The results of impulse response functions show that in the short run the trade openness increases the output growth but decreases the inflation rate. However, the short-run impact of openness on the growth of employment is negative. Moreover, the results show that a one unit change in the standard error of trade openness has no long-run effect on the output growth, the inflation and the growth of employment.
Gholamreza Mesbahi Moghadam; Musa Shahbazi Ghiasi; Seyed Reza Nakhli
Volume 16, Issue 48 , October 2011, , Pages 193-221
Abstract
Anfal” and natural resources are viewed as significant sources of financial resources that Holly Shariah assigns their ownership to the Islamic state to pursue the public goals. On this topic, policy-making for management of these resources, and control of their depletion is of paramount importance ...
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Anfal” and natural resources are viewed as significant sources of financial resources that Holly Shariah assigns their ownership to the Islamic state to pursue the public goals. On this topic, policy-making for management of these resources, and control of their depletion is of paramount importance whereas appropriate policies in natural resource management and Anfal can lead to sustainable development and intergenerational interests. In this paper we introduce principles and policies for utilization of Anfal resources. After addressing the ideas of Islamic jurists (Foghaha), we select the theory and definition of Imam Khomeini about Anfal as a basis for analysis and consequent reviewing of Hadith and historical issues on Anfal, we conclude that Muslem´s interests (Maslehat) and society’s benefit is the main criteria for utilizing Anfal. Finally, according to the duties of Islamic government, we introduce a policy prescription for allocation of revenues from Anfal in the areas such as Justice, Economic Infrastructures, Human Development and Necessities. As a result we can assert that given a successful management of Anfal and natural resources, Islamic government can pursue many essential goals of society.
Mojtaba Yousefi Dindarlo; Mohammad Noferesti
Volume 7, Issue 23 , July 2005, , Pages 193-219
Abstract
In the early years of 1960s, Schultz and Denison introduced the concept of human capital. Since then economists have analyzed the role of human capital on various economic variables. Education, experiment, and health are three main dimensions of human capital among which education is considered as the ...
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In the early years of 1960s, Schultz and Denison introduced the concept of human capital. Since then economists have analyzed the role of human capital on various economic variables. Education, experiment, and health are three main dimensions of human capital among which education is considered as the most important one. The educational dimension of human capital is known as educational attainment.
In this paper, after introducing different indexes, which have been used for educational attainment, we argue that average years of schooling is the most important index of educational attainment. By reviewing Barro’s method for calculating average years of schooling, and implementing essential changes needed for consistency with the Iranian educational system and the data, we develope a method for calculating the average years of schooling in Iran. We calculate average years of schooling of men and women, and also for four educational levels (elementary, guidance, secondary and higher education) for the period 1961 to 2001.
Vahid Mehrabani
Volume 15, Issue 45 , February 2011, , Pages 199-220
Abstract
Regulations making is one of the forms of government interventions in economy. Regulations can change business environment and hence employment, production and productivity. Labor Law is one of the important forms of regulations in Iran that was modified in 1369 in favour of labor. Some studies show ...
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Regulations making is one of the forms of government interventions in economy. Regulations can change business environment and hence employment, production and productivity. Labor Law is one of the important forms of regulations in Iran that was modified in 1369 in favour of labor. Some studies show that the reduction of labor demand in industry has been the outcome of this amendment. We estimate the labor productivity in the Iranian Industries using the fixed effect method. The results of current study suggest that the amended labor law has increased productivity of all industries but wood industry.
Zahra Nasrollahi; Mina Shahviri,
Volume 15, Issue 44 , October 2010, , Pages 199-230
Abstract
Management of Foreign exchange reserves is important for every country. This matter is also of particular interest for Iran as an Oil exporting developing country. This paper designs an optimal portfolio for that part of foreign exchange incomes which is used for investment. Using the data on foreign ...
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Management of Foreign exchange reserves is important for every country. This matter is also of particular interest for Iran as an Oil exporting developing country. This paper designs an optimal portfolio for that part of foreign exchange incomes which is used for investment. Using the data on foreign exchange daily returns, for the period 2000-2008, and applying univariate and multivariate Garch models, we estimate a model which maximizes expected returns subject to a Value-at-Risk constraint. The results are examined using Backtesting, and then the most acceptable model is suggested. The results that the multivariate GARCH model is the most efficient method for selecting the foreign exchange optimal portfolio in Iran.
Maryam Hematy; Ahmad Reza Jalali Naini
Volume 16, Issue 49 , February 2012, , Pages 205-239
Abstract
Achieving price stability is known as one of the tasks and objectives of policy makers especially in central banks. In order to implement inflation targeting policy, the information relating to the response of prices to monetary policy shocks is essential for monetary policy makers. Most studies analyze ...
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Achieving price stability is known as one of the tasks and objectives of policy makers especially in central banks. In order to implement inflation targeting policy, the information relating to the response of prices to monetary policy shocks is essential for monetary policy makers. Most studies analyze the response of aggregate price level like CPI or consumption deflator to monetary shocks. Moreover, a limited number of studies that examine the effect of monetary shocks on disaggregate prices use vector auto regression models for the analysis. The results of these studies show that some disaggregated prices increase slightly in response to a contractionary monetary shocks. This finding which is inconsistent with the standard theory is known as the "price puzzle" in literature. In this paper we use a factor Augmented VAR framework to examine the impulse response function of 12 categories of CPI to one standard error in money base growth rate in Iran. Our two main findings are: 1) monetary shocks have a lagged effect on disaggregated prices and most prices response to a monetary shock with a considerable delay. 2) There is a substantial difference amongst 12 CPI sub-categories in response to an increase in monetary base growth rate. However, the impulse response functions of disaggregated prices are not statistically significant based on bootstrap confidence interval. Contrary to existing studies based on standard VAR model, by using FAVAR approach, we also find that price responses don’t display a price puzzle in the case of Iran.
Mohammad Ali Falahi; Hossein Ansari; Kamran Davari; Narges Salehnia
Volume 13, Issue 38 , April 2009, , Pages 217-242
Abstract
Water is a necessary and scarce good that requires new strategies for allocation and optimal use. we. Water pricing and levying suitable tariffs subject to social welfare maximization are the economic solution to this problem. In this study, we have considered available tariffs in domestic water sector ...
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Water is a necessary and scarce good that requires new strategies for allocation and optimal use. we. Water pricing and levying suitable tariffs subject to social welfare maximization are the economic solution to this problem. In this study, we have considered available tariffs in domestic water sector of the city of Neyshabour. According to current tariff problems, new tariffs are offered by using Ramsey Model with the target of maximization of social welfare. Finally, Ramsey tariffs are modified based on two scenarios. In the first one, we incur less cost to customers with paying a subsidy about 135.5 Rial/m3/year by government. In this scenario, the minimum cost is zero for users with consumption less than 5 m3/month and the maximum cost is 1216 Rial/m3/month for users with consumption more than 30 m3/month. In the second one, losses related to low income group’s paying are compensated by high income users. So, minimum cost is zero for users with consumption less then 5 m3/month, and maximum cost is 1980 Rial/m3/month for users with consumption more than 40 m3/month. In these two scenarios, the water and wastewater company would be in the break even point.
Financial Economics
Teimur Mohammadi; Mohammad Reza Feghhi Kashani; Mahdi Samei
Abstract
The negative correlation between an asset’s volatility and its return is known as the “leverage effect”. This relation is explained by the effect of the return of a firm’s equity on the degree of leverage in its capital structure. If this relation holds, the increased volatility ...
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The negative correlation between an asset’s volatility and its return is known as the “leverage effect”. This relation is explained by the effect of the return of a firm’s equity on the degree of leverage in its capital structure. If this relation holds, the increased volatility resulting from a fall in stock price should be comparable with the decreased volatility resulting from a price rise with the same magnitude and also, this effect should be persistent. Most of the researches in the “leverage effect” examine the relation between volatility and stock return. To examine the effects of both returns and financial leverage on volatility data from the 22 biggest companies from March 2009 to March 2019 in Tehran Stock Exchange are collected. To find the leverage the value of debt in the capital structure of selected companies is calculated using Geske compound option pricing model. The data show the leverage effect only in negative returns and may have a negligible direct connection to the firm leverage.
seyed komail tayebi; Karim Azarbaijani; Yaser Abbaslou
Volume 13, Issue 39 , July 2009, , Pages 11-27
Abstract
There has been relatively little empirical analysis of the role played by cultural-social-economic policies to promote entrepreneurship. Governments, for instance, conduct different entrepreneurship promotion policies. Financial assistance and easing of bureaucratic rules are provided to improve the ...
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There has been relatively little empirical analysis of the role played by cultural-social-economic policies to promote entrepreneurship. Governments, for instance, conduct different entrepreneurship promotion policies. Financial assistance and easing of bureaucratic rules are provided to improve the entrepreneurship process in a country. Entrepreneurs benefit from education and skills, which are planned and subsidized by governments to provide an appropriate environment for business. So, it seems government policies on education promotion and human development, for instance, are important factors affecting entrepreneurship. Additionally, growth in total investment and savings expand economic capacity for further activities by entrepreneurs. The objective of this paper is to explore a causal relationship between entrepreneurship and its main determinants through regression analysis. We employ data on education, human development, property rights, the rule of law and some economic variables in 123 selected countries over the period 2000-2005 to estimate the entrepreneurship regression model by the panel data approach. The implication is that education, economic growth and optimal government policies can encourage entrepreneurship.
Seyed Kamal Sadeghi; Rahman Khosh akhlag; Mostafa Emadzadeh; Rahim Dallaly Esfahani; Mahdi Nafar
Volume 12, Issue 37 , February 2009, , Pages 155-177
Seyed Shamseddin Hosseini; Ehsan Ehtiyati
Volume 8, Issue 28 , October 2006, , Pages 169-193
Abstract
The competitiveness assessment of products for a country can be done by measuring advantage indicators. The concept of advantage in international trade, has been developed in accordance with circumstances, meanwhile the measurement indicators of advantage have evolved. In this regard, due to the important ...
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The competitiveness assessment of products for a country can be done by measuring advantage indicators. The concept of advantage in international trade, has been developed in accordance with circumstances, meanwhile the measurement indicators of advantage have evolved. In this regard, due to the important role of methanol in the Iranian petrochemical investment, Production (7/5 million tons in 2009) and export (255 millions, in 2004), this article concentrates on measuring Iran's advantage in methanol products.
In this line, the evolution of advantage theories, from traditional (comparative advantage) to modern (competitive advantage) will be presented. Then, the indicators of comparative advantage and competitive advantage will be introduced. To calculate Iran's methanol products competitive advantage, four indicators including DRC, RCA, CMS and TM are measured .DRC is less than unit , meaning that Iran's Methanol Products have comparative advantage. RCA is obtained more than unit , indicating that methanol products are able to compete in international trade. CMS shows that, competitiveness of Iran's methanol products are increasing and TM indicates that Iran's methanol products belong to winners group in a progressive markets. Therefore, the findings indicate that, not only on the base of domestic resource opportunity cost criteria, but also by considering trade information, Iran's methanol products benefit from competitiveness or competitive advantage. Finally, factors affecting competitive advantage of Iran's methanol are analyzed in the Porter's framework.
Mansour Zerra Nezhad; Sohrab Noroozani
Volume 7, Issue 25 , February 2006, , Pages 175-190
Abstract
This paper deals with estimation and analysis of demand for labour in Khuzestan's manufacturing. First, we estimate the stock of capital applying exponential trend method. Employing Johansen’s approach, the research investigates the long-run effect of significant determinants on demand for labour ...
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This paper deals with estimation and analysis of demand for labour in Khuzestan's manufacturing. First, we estimate the stock of capital applying exponential trend method. Employing Johansen’s approach, the research investigates the long-run effect of significant determinants on demand for labour in Khuzestan’s manufacturing for the period 1966-2002. The findings indicate that in the long run, stock of capital and productivity of capital affect positively the demand for labour, while the average capital has negative effect. The result also shows that the error correction term is negative and less than one (-0.95) indicating that the speed of adjustment toward equilibrium in response to deviations from the long-run equilibrium is very high.
Simin Abdolalizadeh Shahir; Koroush Eshghi
Volume 5, Issue 17 , February 2004, , Pages 175-192
Abstract
One of the classical applications of operation research in investment decision making is the portfolio selection problem. In this problem a fixed sum of money is to be spread among different investments and there is a risk associated with the rate of return on each investment. The object of the portfolio ...
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One of the classical applications of operation research in investment decision making is the portfolio selection problem. In this problem a fixed sum of money is to be spread among different investments and there is a risk associated with the rate of return on each investment. The object of the portfolio selection problem is to determine how much money should be allocated to each investment to maximize the total expected return and minimize the portfolio’s risk. Since there is no specific algorithm to find an optimal feasible solution for large scale portfolio problems, in this paper two genetic algorithms are developed to find a near optimal solution. In the first algorithm the selection of investments is determined and in the second one the weight of each investment in the portfolio is calculated. Finally, the two algorithms have been applied successfully to the portfolio of stocks of the Tehran Stock Exchange with more than 200 stocks.
Fatemeh Ziba
Volume 10, Issue 34 , April 2008, , Pages 179-200
Abstract
It is argued that economic regulation of prices and conditions of public utilities improves efficiency and the quality of services. A Regulatory reform requires a regulatory body in place to set the rule of the game and to monitor the behavior of the firms engaged in the reform. The regulator's main ...
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It is argued that economic regulation of prices and conditions of public utilities improves efficiency and the quality of services. A Regulatory reform requires a regulatory body in place to set the rule of the game and to monitor the behavior of the firms engaged in the reform. The regulator's main task is to calculate the optimal prices and the level of cost-reducing effort for the firm and to instruct the firms to implement this solution. It is assumed that the result would furnish an environment in which competition will be flourished and accordingly efficiency and the quality of services will be improved. This study investigates regulatory reform in Iranian Electricity Distribution Industry (IEDI) and its impact on efficiency. To this end, efficiency in IEDI is estimated using DEA method and Malemquist index. Finally, price caps in EDI are calculated.
Seyed komail Tayebi; Ahmad Googerdchian
Volume 8, Issue 26 , April 2006, , Pages 181-203
Abstract
The petrochemical industry plays an important role in the world economy and has many forward and backward linkages with other sectors. So capacity expansion through attracting FDI in this industry can help economy of the host countries to reach; GDP growth, employment creation, technology transfer and ...
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The petrochemical industry plays an important role in the world economy and has many forward and backward linkages with other sectors. So capacity expansion through attracting FDI in this industry can help economy of the host countries to reach; GDP growth, employment creation, technology transfer and its spillover effects. The main purpose of this study is to present and estimate a FDI model which includes the major determinants of attracting FDI to the Iran's Petrochemical Industry. The model coefficients are estimated by the Panel Data, using observations of FDI and the relevant variables on a set of the Iranian individual petrochemical complexes, over the period 1993-2002. The estimation results indicate that: profitability of the host industry, the economic size (production capacity), the degree of openness of the industry and the level of R&D expenses affect significantly the inflow FDI to the Iran's Petrochemical Industry. In other words, improvement in the quantity and quality of such significant factors leads to the inflow of FDI to petrochemical industry of Iran and eventually expanding potential of this industry as well as other sectors dependent on petrochemical industry.
Ali Emami Meibodi; Morteza Ghazi
Volume 12, Issue 36 , October 2008, , Pages 187-202
Abstract
This paper has assesses of the recreational value of the Saee Park by estimating a visitor’s willingness to pay (WTP) for recreational benefits obtained, the contingent valuation (CV) and dichotomous choice (DC) using methods. The light model estimation results indicate that 60% of visitors are ...
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This paper has assesses of the recreational value of the Saee Park by estimating a visitor’s willingness to pay (WTP) for recreational benefits obtained, the contingent valuation (CV) and dichotomous choice (DC) using methods. The light model estimation results indicate that 60% of visitors are willing to pay for recreational values at the SaeePark. The mean value for willingness to pay for the recreational value of the park is 1840 Rls. per visit. The mean of WTP for recreational value of this park is 220 million Rls household/month and the total recreational annual value was estimated at 2.7 billions Rls for the Park. Results also reveal that offer value and visitor’s income variables are the most important factors that affect visitor’s WTP for use of the SaeePark . The visitor’s belief of park quality and the cost of coming to park are the next important factors that affect visitor’s wtp. The other important factors are the weekly time engaged in art work, the weekly study time, and the type of residential house.
Farhad Dejpasand; Hosein Goudarzi
Volume 14, Issue 42 , April 2010, , Pages 189-207
Abstract
A great deal of literature has examined the relationship between government size and economic growth. To investigate this relationship, this study applies a threshold regression model to test whether the Army curve exists in Iran as an oil exporting country. Five classification of government size include ...
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A great deal of literature has examined the relationship between government size and economic growth. To investigate this relationship, this study applies a threshold regression model to test whether the Army curve exists in Iran as an oil exporting country. Five classification of government size include total government expenditure/GDP, government investment expenditure/GDP and government consumption expenditure/GDP, government expenditure financed by oil /GDP and government expenditure financed by tax/GDP. The result reveal that all classification except government expenditure finance by tax have a threshold effect and economic growth is maximum when government expenditure is between 23 to 30 percent of GDP.
Mohammad Hosein Hasani; Samad Aziznejad
Volume 9, Issue 30 , April 2007, , Pages 193-212
Abstract
Facing foreign threats in the region, Iran has been increasing its defence expenditures, for the past three decades. In this paper, we study the impact of the Iranian defence expenditures on the economic growth for the period 1971-2003. We use the Keynesian macro model to show explicitly the relationship ...
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Facing foreign threats in the region, Iran has been increasing its defence expenditures, for the past three decades. In this paper, we study the impact of the Iranian defence expenditures on the economic growth for the period 1971-2003. We use the Keynesian macro model to show explicitly the relationship between the defence expenditures and the economic growth. Our results indicate that the defence expenditures in Iran have had negative effects on the saving and the balance of trade, and therefore, on the economic growth.
Mohammad Ali Dehghan Dehnavi; Nowruz Kohzadi; Sadegh Khalilian
Volume 7, Issue 24 , October 2005, , Pages 197-211
Abstract
Non-parametric test of revealed preference identifies consumers' preferences by comparing their choices in different times. Unlike the parametric tests, non-parametric test means that no parameter is estimated and no functional form is imposed on the utility and/or demand function. If a set of consumption ...
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Non-parametric test of revealed preference identifies consumers' preferences by comparing their choices in different times. Unlike the parametric tests, non-parametric test means that no parameter is estimated and no functional form is imposed on the utility and/or demand function. If a set of consumption data satisfies generalized axiom of revealed preference (GARP) then there exists a non-satiated, continuous, concave, monotonic utility that rationalizes the data set. Existence of such utility function means that consumer behavior is rational. In this study, urban households' aggregate consumption data - involving 20 categories and subcategories – are used to investigate the rational behavior hypothesis in period 1965-2002. The findings indicate that rational behavior hypothesis is reliable and urban households' aggregate consumption data may be rationalized by a neoclassical utility function.
Ali Reza Shakibai; Hamid Reza Horry; Fatemeh Irani Kermani
Volume 8, Issue 27 , July 2006, , Pages 199-230
Abstract
The purpose of this paper is to answer the following question: Is estimate the price and income elasticites of the demand for health services in Iran elastic?.
This researchWe use has used the Almost Ideal Demand System (AIDS) model. AIDS model using the household expenditure data ...
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The purpose of this paper is to answer the following question: Is estimate the price and income elasticites of the demand for health services in Iran elastic?.
This researchWe use has used the Almost Ideal Demand System (AIDS) model. AIDS model using the household expenditure data for the three subsections of medicine, user fees for doctors' and fees and hospitals ization services for three income groups for thein the period 1971 – 2001.
One conclusion isOur results indicate that, the health services should be considered as aare necessity for all income groups. In this case, cross elasticities showed and that hygiene and/or mMedical services have complimentary relations with cloths and shelter.
Price elasticitiesy of hospitalization for low, medium, and high income groups was are low: -0.52, -0.53 and -0.62, respectively. These results indicate of low elasticity of hospitalization services for all income groups and this issue Overall, we conclude that the confirms that elasticity for health services is low in Iran.
Koohsar Khaledi; Saeed Yazdani; Andisheh Haghighatnejad Shirazi
Volume 11, Issue 35 , July 2008, , Pages 205-228
Abstract
Investment as one of the important factors that has a positive impact on economic growth is expected to alleviate poverty in the long run. This paper studies the role of agricultural investment on economic growth and rural poverty in the rural areas of Iran. To estimate the model, we use the seemingly ...
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Investment as one of the important factors that has a positive impact on economic growth is expected to alleviate poverty in the long run. This paper studies the role of agricultural investment on economic growth and rural poverty in the rural areas of Iran. To estimate the model, we use the seemingly unrelated regression equations "SURE" and the time series date for the period 1971-2003 The results show that although agricultural investment has a positive effect on economic growth of this sector, the gains from the growth have not had a positive impact on poverty alleviation. It seems Iran agri-economic growth is not at the level that could affect the rural poverty and the benefit resulted from current growth rate does not trickle-down to the rural poor.
Rahim Goodarzi; Alireza Karbasi; Masode Homaionyfar
Volume 14, Issue 43 , July 2010, , Pages 211-226
Abstract
A macroeconometric simulation study was undertaken to evaluate the impact of commodity price stabilisation (CPS) schemes for the export of Agricultural crop in Iran. The findings suggest that there is a negligible level of favourable macroeconomic impacts of CPS. Contrary to the expectation, CPS ...
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A macroeconometric simulation study was undertaken to evaluate the impact of commodity price stabilisation (CPS) schemes for the export of Agricultural crop in Iran. The findings suggest that there is a negligible level of favourable macroeconomic impacts of CPS. Contrary to the expectation, CPS adversely affects the stability of monetary and external sectors (BOP). That is, the CPS policy would faile to stabilise the macroeconomy, therefore, it is not appropriate from the macroeconomic point of view. Technical progrees, futures market, and rural credit are the possible alternative policy options to manage the price risk.
Mohammad Ali Ghetmiri; Javad Harati
Volume 7, Issue 23 , July 2005, , Pages 221-235
Abstract
The purpose of this paper is to study the impact of macroeconomic variables on food price index in the Iranian economy for the period 1959-2000. An auto-regressive distributed lag (ARDL) model is used for this purpose.
The results indicate that monetary expansion and the depreciation ...
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The purpose of this paper is to study the impact of macroeconomic variables on food price index in the Iranian economy for the period 1959-2000. An auto-regressive distributed lag (ARDL) model is used for this purpose.
The results indicate that monetary expansion and the depreciation of real exchange rate have a positive impact on food price index but an increase in the degree of openness of the economy will reduce food prices with no determinate relationship between food price index and food production and per capital income in the long run. Except for the relationship between food production and food price index which is negative in the short run, the results are similar to that of the long run. The error correction model is indicative of a relatively rapid adjustment of short run disequilibrium towards the long run equilibrium.
