Parviz Davoodi; Zahra Zarepour
Volume 8, Issue 29 , February 2007, , Pages 47-74
Abstract
Demand for money and its stability are important in an economy especially in the design of monetary policy. Money consists of different components and its definition would depend on types of components included. It has been argued that the simple sum indices as the definition of money are inconsistent ...
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Demand for money and its stability are important in an economy especially in the design of monetary policy. Money consists of different components and its definition would depend on types of components included. It has been argued that the simple sum indices as the definition of money are inconsistent with microeconomic theory. By using the simple sum method for aggregation, it is implicitly assumed that there is a perfect substitution among the various money components. An alternative definition of money uses the index number theory to construct indices which allow different substitution rates among the components of money. In this paper, we estimate the Iranian demand for money for the period 1367:1 to 1383:1 (1988-2004) using Divisia index for definition of money.
The results show that the estimated demand for money in Iran is stable. However, the adjustment rate in the models using Divisia index is higher than that when the simple sum index is used. Our results are consistent with the other studies that indicate a rapid adjustment in the Iranian money market.
Parviz Davoodi; Akbar Shahmoradi
Volume 6, Issue 20 , October 2004, , Pages 81-113
Abstract
In this paper, we analyze the determinants of the FDI using a panel data consisting of 46 developed and developing countries, including Iran. The period of study is 1990-2002. The estimated reduced form model is derived from a simultaneous macroeconomic model. The Housman test statistic carried out to ...
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In this paper, we analyze the determinants of the FDI using a panel data consisting of 46 developed and developing countries, including Iran. The period of study is 1990-2002. The estimated reduced form model is derived from a simultaneous macroeconomic model. The Housman test statistic carried out to verify using fixed effect rather than random. Also, the tests of Hadri (2000) for the null of stationarity against the alternative of unit root in panel data are carried out to show the reliability of the results, among other factors. The results imply that focusing on the necessary laws and regulations, motivating local private investment, increasing R&D, enhancing infrastructure investment’s efficiency and productivity, more skilled and productive labor force, and finally increasing the political stability of the country could be most important factors to attract FDI.
