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.
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.
