Ali Faridzad; Soheila Parvin; Ali Asghar Banoue
Volume 16, Issue 47 , July 2011, , Pages 105-127
Abstract
Reforming Iran’s tax system is one of the most important issues due to the role of government’s expenditures and uncertainty in oil income. Therefore the modern value-added tax system is recognized as an approach by which tax transparency and tax structure reform can be enabled. However, ...
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Reforming Iran’s tax system is one of the most important issues due to the role of government’s expenditures and uncertainty in oil income. Therefore the modern value-added tax system is recognized as an approach by which tax transparency and tax structure reform can be enabled. However, increase in prices is an impact of applying this system. In this paper we have taken the advantage of symmetric product-by-product input-output table with basic prices to study the impacts of implementing value-added tax systems. With the help of IO-SAM software, this is the first time to set the Make and Use matrix on price basis of the year 1378. This table is the only table that can be used in analyzing price impacts caused by value-added tax system. The results illustrate; a 3-percent value added tax rate leads to increase in level of prices for about 1.5 percent, without consideration of any tax exemption. After exempting subject products of article 12 of value-added tax law, this index reaches 0.8 percent. Moreover, our examinations identify a 2.99 housing service price impact as the highest among the other 119 products’ in the economy. This rather high impact is generally rooted in its being not interchangeable in the as well as its overweighting demand.
Mahmood Khataei; Parvin Eghdami
Volume 7, Issue 25 , February 2006, , Pages 23-46
Abstract
In this paper, using ARDL method, price elasticity of demand for gasoline is estimated for period 1980-2002. The elasticity is forecasted for he period 2003-2015. The results show that there is a negative and weak relation between real price gasoline (RPG) and gasoline demand. If the RPG rises one unit ...
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In this paper, using ARDL method, price elasticity of demand for gasoline is estimated for period 1980-2002. The elasticity is forecasted for he period 2003-2015. The results show that there is a negative and weak relation between real price gasoline (RPG) and gasoline demand. If the RPG rises one unit (200 Rials in nominal price), the gasoline demand would fall 18.5 units (1850 million liters) per year. It seems the reason foe such a low effect is the government polices to keep nominal price of gasoline (NPG) lower than international one. At such a low price, the demand elasticity is very low. In order to forecast the gasoline demand elasticity, three scenarios for NPG rises are considered. The results indicate that, by a 10% annual rise in the NPG, the gasoline demand elasticity would decrease. By a 30% annual rise in the NPG per year, gasoline demand elasticity would increase slowly reaching -0.50 in the last year by forecast. By a 50% annual rise in the NPG per year, gasoline demand elasticity would increase rapidly and it would reach to less than -1.
Kazem Yavari; Hossein Ghaderi
Volume 6, Issue 18 , April 2004, , Pages 111-140
Abstract
The purpose of this paper is to find out simultaneously the determinants of the parallel market premium, real exchange rate and price level by using a macroeconomic model. Using the 3SLS regression technique, the paper shows that money, expected inflation rate, net return of foreign exchange, investment, ...
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The purpose of this paper is to find out simultaneously the determinants of the parallel market premium, real exchange rate and price level by using a macroeconomic model. Using the 3SLS regression technique, the paper shows that money, expected inflation rate, net return of foreign exchange, investment, public budget and oil revenues have significant effects on the parallel market premium, real exchange rate and price level. Our simulation results show that devaluation of domestic currency raises prices. It also lowers the premium in the short run but not it the long run. The nominal devaluation leads to real devaluation in the first year but will cause the real exchange rate to be overvalued at the end. This policy will also lower output and raise domestic currency denominated oil revenues and official foreign reserves. An important implication of the empirical results of the paper is that government has to maintain discipline in fiscal and monetary policy to be able to stabilize the parallel market premium, real exchange rate and prices.
