Iranian Journal of Economic Research

Abstract The Keynesian macro - economic model of a single producer and a single consumer, Kaldor, Passineti, and Kalechi's Model of a single producer and many consumers, and Leontief's model of many producers and a single consumer have certain limitations. These models are inadequate in simultaneously analyzing direct and indirect effects of consumption, primary income and structure of production on potential sectional employment. In this study, the Semi - Social Accounting Matrix (Semi - SAM) has been introduced in order to overcome some of these limitations. The main focus of this article is on the methodology and treatment of endogen sing consumption and income of household with respect to mixed income, geographical classification, the interrelationship with consumption, primary income, and structure of production. The results show that as compared to the Leontief Model, the Semi - SAM approach is more flexible in revealing the potential sectoral employment of the economy.

Abstract Income Tax and Labour supply is an important part in public sector Economics. Income tax affects labour supply which in turn affects the national income. Economic theory cannot predict the effect of tax on Labour supply, because are in opposite directions. This research is concerned with the effect substitution and income effects of taxation on labour supply by an econometric study of cross-sectional data. It is assumed that the effect of taxation is to alter budget constraints. Because different individuals have different gross wage rates and different amounts of other income, they have different budget constraints. If difference in preferences are adequately controlled for, it is possible to derive labour supply estimates from the cross-sectional data which can then be used as basis for estimating the effect of taxation. In this study we show that the effects of net wage rate on labour supply is significant, that non wage income is not significant. We finally recommend a policy for tax refoRm by changing the marginal tax rate.

Abstract Research and Development expenditures in process of development and progress of economies are very important. Therefore this paper tries to determine effect of R&D expenditures on economic growth rate in the set of different countries of the world. This study has estimated the causal relation between GNP growth rate, and R&D expenditures, fiscal investment, and growth rate of labor force of countries during 1991-95. By using the World Bank data, we have estimated our model for groups of high income and lower income countries. We found that the R&D activities have significant and great effect on GNP growth rate in all countries, especially in developing countries.

Abstract Present research study aims to test the capital-skill complementarity hypothesis in the context of Iranian economy. Capital and skilled labor are postulated to be complementary. Skilled labors are defined as those labors with university education. To test this hypothesis, sector-wise demand functions for this class of labor have been estimated. These sectors are classified as: agriculture, industry, public, social, personal and housing services and other services. The econometric results indicate that capital and skilled labor appear to be complementary in all production and service sectors. As such, introduction of policies such as tax credit investment would result in cost reduction in terms of investment expenditures, and increase in demand for skilled labor force. Across the production sectors, skilled and unskilled labor has appeared as substitutes while in service complementary to each other but with fuel it appears as complementary.

Abstract The objective of the present paper is to explore the role of steel industry in the economy and to investigate its demand determinants. The paper has made attempts to find answers for questions still remaining in steel products market. Although the trend of domestic production has had an appropriate growth during the period 1967-99, excess demand for steel has been yet met by imports. The study specifies an import demand model for Iran's steel industry in a logarithmic form and uses the OLS method to estimate the model. The results indicate that import demand for steel is inelastic with respect to changes in relative prices, and elastic with respect to income. Finally, based upon the estimation results the model predicts steel demand for the third I.R. Iran's cultural, Social and Economic Development Plan, to be 10 Million tons for ending years.

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