Authors
1 M. A in Agriculture Economics
2 Associate Professor, University of Shiraz
Abstract
The main objective of this study is to assess the effects of monetarypolicies on consumption behaviors of rural households in Iran, using the Euler equations and OLS and IV(Instrumental Variable) estimation methods. Results show that there is no relationship between consumption growth of rural households and interest rate. In other words, there are no interactions between monetary policies and rural households' consumption. Also, rural consumption was limited more by credit availability than interest rate. Furthermore, precautionary savings is noticeable among rural households.
Keywords
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