Seyed Kamal Sadeghi; Reza Ranjpor; Fateme Bagherzadeh Azar; Soha Mousavi
Volume 20, Issue 65 , February 2016, , Pages 37-61
Abstract
In developing countries like Iran, fiscal policy instruments- especially taxes- affect the competitive power of financial markets and the performance of banking and non- banking institutions in these markets. Thus, the quality of combination of financial markets and tax policies for economic growth ...
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In developing countries like Iran, fiscal policy instruments- especially taxes- affect the competitive power of financial markets and the performance of banking and non- banking institutions in these markets. Thus, the quality of combination of financial markets and tax policies for economic growth has raised many issues. On the one hand, theories state that any increase in taxes leads to a reduction in investment funds and has an opposite impact on financial markets. On the other hand, they state that taxes reduce market fluctuations and prevent financial crises. This paper studies the impact of taxes on financial market in Iran during 1970 – 2011 by using Bounds test and Auto-Regressive Distributed Lag (ARDL) model. Results show that taxation has a positive effect on financial markets. This indicates that the role of taxation, according to improvements in state’s tax system in recent years, has become more prominent in the further development of financial markets.
Javid Bahrami; Parvaneh Aslani
Volume 7, Issue 23 , July 2005, , Pages 119-145
Abstract
In this research, we test for the factors that determine private saving in the Iranian economy during 1968-2001 using auto regressive distributed lag model (ARDL). In this model, we examine the effects of factors such as disposable income, social security costs, unemployment rate, long term interest ...
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In this research, we test for the factors that determine private saving in the Iranian economy during 1968-2001 using auto regressive distributed lag model (ARDL). In this model, we examine the effects of factors such as disposable income, social security costs, unemployment rate, long term interest rate, inflation, Gini coefficient, ratio of the value of stocks exchanges to the terms of trade GDP, and a dummy variable for the post-war years. The results show positive effects of income, improvement of income distribution, and more developed financial markets, and negative effect of social security costs on the saving of private sector.
Our results also indicate that the best and the most secured way to increase private saving is to improve financial markets performance that leads to a better absurbtion of saving and to an increases in investment possibility.