Energy Prices Increase, Welfare, and Government Expenditure: An Input-Output Exercise Model
Asghar
Shahmoradi
Assistant Professor, University of Tehran
author
Mohsen
Mehrara
Assistant Professor, University of Tehran
author
Navid
Fayazi
Master of Energy Economics and Marketing
author
text
article
2010
per
This paper investigates the impacts of an energy price increase on price levels, income distribution, consumer’ welfare and government expenditure. In doing so, it uses a static Input-Output approach in the context of the input-output table for Islamic Republic of Iran for the year 2004. An exogenous increase in energy prices, due to reduction in energy subsidies, increases the production costs and consequently increases the general price level. Such price increases, result in a consumer’ welfare reduction and affect the government expenditures. It defines a set of indirect utility functions, which then used to measure the change in welfare of households. A set of constant coefficients used to measure the increase in households’ budget and change in government expenditures. Two distinct scenarios defined for energy prices increase, the first is a once-for-all 100% increase in those prices, and the second scenario assumes a once-for-all complete elimination of energy subsidies in Iran.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
1
24
https://ijer.atu.ac.ir/article_3466_86d4e05c7f71baeb784de013c4e19f27.pdf
An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework
Gholamreza
Keshavarz Haddad
Associate Professor, Sharif University of Technology, Department of Economics
author
Hamed
Mortezazadeh
Graduate student,Sharif University of Technology
author
text
article
2010
per
Decreasing trend of gasoline real price accompanied with economic growth and increasing number of automobiles have resulted in high consumption of gasoline in Iran. The average growth rate of hidden subsidies in the recent years is amounted 8.5 percent, and the size of gasoline subsidies has been more than government tax revenues for many years. The average growth rate of gasoline consumption has also been 10 percent in recent years. ,. The huge financial burden of imported gasoline and the amount of required subsidies have made it indispensable to make a serious change in the pricing policy of oil products. The main purpose of this paper is to evaluate the distortionary effects of gasoline price control on output, employment, prices, wages and income distribution, using a CGE model. Our findings show that, a 100% increase in the gasoline price will result in the increase of consumer’s and product’s prices and wage in short run, but it will decrease households’ income and the price of capital in the long run.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
25
53
https://ijer.atu.ac.ir/article_3467_01ebbe9de339521f0a4bddb4ac7c13b6.pdf
Stock Returns and Inflation;
A Wavelet Analysis in Tehran Stock Exchange (TSE)
Saeed
Moshiri
Ph. D in Economics, Department of Economics, STM College, Univeresity of Saskatchewan, Unviersity of Allmaeh Tabatabaie
author
Kamran
Pakizeh
Ph. D Candidate in Accounting, Department of Accounting and Management, Allameh Tabatabaei University
author
Manoochehr
Dabirian
MS in Mathematics
author
Abolfazl
Jafari
MS in Financial Management
author
text
article
2010
per
Investors in stock markets are concerned about the inflation effect on their returns. However, the impact varies based on investment horizons. Since investors have different attitudes and diverse investment horizons, studying the relationship between inflation and stock returns in different time scales would have great implications for their investment. In this paper, we examine the Fisher hypothesis, which denotes a positive relationship between nominal stock return and inflation rate, using a wavelet multi-scaling method that decomposes a given time series on a scale-by-scale basis. The wavelet approach based on time-scale decomposition provides a valuable means of testing the Fisher hypothesis and resolves the problem of conflicting results in the literature. Our results show a negative relationship between inflation and the TSE returns in short-run horizon and a positive relationship in long-run horizon.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
74
55
https://ijer.atu.ac.ir/article_3468_cde64cf66d0cb9aade25b3dcbc47c95a.pdf
The Effect of Inflation on the Size of Financial Sector , The Case of Iran
Vahid
Taghinezhadomran
Assistant Professor, Mazandaran University, Babolsar, Iran
author
Majid
Hassani
M.A. student in economics
author
text
article
2010
per
Part of harmful effects of inflation on the economy stems from the financial sector. This paper argues that inflation shifts resources from manufacturing sector to financial sector leading to an increase in the relative size of financial sector. This shift of resources can be viewed as a harmful effect of inflation, because if inflation were lower, the resources could be used directly to increase production of goods. Using Johanson's methodology and data of Iran in 1343-1385, we find that the relative size of financial sector is strongly affected by inflation.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
75
99
https://ijer.atu.ac.ir/article_3958_38baaccd26d0bac1dffc4060ea2880e4.pdf
Economic Welfare in Iran: An application of Composite Index of Economic Well-Being (CIEWB)
Mohammad Reza
Hosseini
PhD Student, Science & Research Branch , Islamic Azad University(IAU) Tehran. Faculty member at Payamenoor University (PNU), Mazandaran, Amol, Iran
author
Ahmad
Jafari Samimi
Professor of, University of Mazandaran, Iran
author
text
article
2010
per
The index of economic well-being (IEWB) covering consumption, wealth, income distribution and economic security is a suitable composite index measuring welfare, growth and development at both partial as well as comprehensive levels .In this study the composite index has been proposed for the first time in Iran and the welfare trend has also been measured for the available data period 1368-1382. In order to aggregate variables and welfare dimensions we have normalized data using the first year of the first development plan (1368) as the base year. In addition, to estimate the trend of total economic welfare index we have used a uniform weight (0.25) table for each of the four dimensions. The results show that the economic security and consumption were respectively the most important dimensions of economic welfare in Iran .Also, comparing the absolute as well as the relative changes in per capita income and IEWB we found that using per capita income as an index will overestimate the level of economic welfare in Iran.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
101
122
https://ijer.atu.ac.ir/article_3959_70534ef2887552ac454b51b20703611e.pdf
Responses of Monetary Policy to House Price Bubble in Iran
Ali Akbar
Gholizadeh
Assistant professor, university of Buali Sina
author
Behnaz
Kamyab
M.A in economics
author
text
article
2010
per
In this paper we analyze the three responses of monetary policy to bubble in housing prices. First rule corresponds to a monetary authority that does not respond to house price inflation. The second rule corresponds to a monetary authority that respond to overall house price inflation, and in third alternative is a policy in which a monetary authority responds to house price bubble. We use an ARDL model with quarterly data for Iran. The results reveal several practical monetary policy lessons. First، a monetary authority should generally respond to house price bubble because minimizes the loss function. Second، this finding holds even if a monetary authority cannot distinguish between fundamental and bubble house price behavior. Third, monetary authority should tighten when house price bubbles are inflating and should ease when house price bubble collapse.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
123
147
https://ijer.atu.ac.ir/article_3960_d5bdc397ba55639509814461267979ef.pdf
A Test for Growth Stability in Non-renewable Resources, The Case of OPEC
Ali
Emami Meibodi
Assistant Professor, University of Allameh Tabatabaie
author
Ehsan
Haghdoost
Environmental Economist, MA
author
Javad
Pakdin
Environmental Economist
author
text
article
2010
per
The increased growth of oil consumption, particularly in developing countries, has turned oil into a strategic commodity in the world. Therefore, identifying factors affecting supply and demand in oil market and the study of price changes are of a great importance. In this article, we have reconsidered the Hotelling model for optimal extraction of non-renewal recourses with regard to the resource effects and technological advances. The cost and demand functions for non-renewable resources are set up in a way to find a stable growth in a system of simultaneous equations of supply and demand. We have utilized data from OPEC in the period 1980- 2006 to test the model and the functions of supply and demand in a system of simultaneous equations using a 3SLS method. The estimation results indicate that the growth rate of the oil price has remained unchangned over rather a long period of time, which is consistent with the theoretical outcomes predicted by the model.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
149
167
https://ijer.atu.ac.ir/article_3961_5515819b12eb7e237509908ae0ce471f.pdf
An Investigation of the Effective Factors on the Relationship between Economic Growth and Environmental Quality
Jamishid
Pajooian
Professor, University of Allameh Tabatabaie and Azad University
author
Maryam
Lashkaryzadeh
Graduate student, Azad University
author
text
article
2010
per
The local and international environmental problems are one of the most important concerns for economists, politicians, and lawmakers. Therefore, an investigation of the relationship between economic growth and environmental pollution can be important ,because it may be used as a base for national and international environmental policies. In this study, a panel data approach was used to analyze the effect of economic growth, technical, preferential and political changes on the important air pollution factors in the 56 selected countries with different developments levels for the period 1995 - 2005.The results indicate that despite the positive effect of the economic growth on the environmental pollution, technological advances have played an important role in the reduction of sulfur and nitrogen dioxide,and in improvement of the political indices in the reduction of carbon dioxide as the air pollutant.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
169
188
https://ijer.atu.ac.ir/article_3962_6c1082ad3ace696559da373345819158.pdf
Government Size and Economic Growth in Iran: A Threshold Regression Approach
Farhad
Dejpasand
Assistant Professor, Shahid Beheshti University
author
Hosein
Goudarzi
Economist, The Iranian Foreign Investment Company
author
text
article
2010
per
A great deal of literature has examined the relationship between government size and economic growth. To investigate this relationship, this study applies a threshold regression model to test whether the Army curve exists in Iran as an oil exporting country. Five classification of government size include total government expenditure/GDP, government investment expenditure/GDP and government consumption expenditure/GDP, government expenditure financed by oil /GDP and government expenditure financed by tax/GDP. The result reveal that all classification except government expenditure finance by tax have a threshold effect and economic growth is maximum when government expenditure is between 23 to 30 percent of GDP.
Iranian Journal of Economic Research
Allameh Tabataba’i University
1726-0728
14
v.
42
no.
2010
189
207
https://ijer.atu.ac.ir/article_3963_cd50aa4103e28cda9fb2a419d1dc91c8.pdf