Behavioral economics
Morteza Khorsandi; Mahnoush abdollahmilani; Teymur Mohamadi; pardis hejazi
Abstract
The effect of income on subjective-wellbeing (as one of the criteria for measuring mental well-being) has been considered in many studies but various dimensions of this effect have not yet been studied. The study aims to investigate the nonlinear effect of income on the subjective-wellbeing of 58 selected ...
Read More
The effect of income on subjective-wellbeing (as one of the criteria for measuring mental well-being) has been considered in many studies but various dimensions of this effect have not yet been studied. The study aims to investigate the nonlinear effect of income on the subjective-wellbeing of 58 selected countries during 2005 to 2020, which has been studied in two scenarios. For this purpose, a PSTR model developed from regime change models has been used. In the present study, the effects of income, unemployment, inflation, life expectancy, and income inequality on subjective-wellbeing have also been investigated. According to the obtained results, in a nonlinear relationship, the effect of GDP on subjective well-being at a certain threshold value of income inequality is decreasing. Therefore, if increasing national income and reducing income inequality as a factor affecting welfare is considered by politicians, it is also important to note that reducing inequality from a certain threshold onwards reduces the impact of income on welfare. This means that from a certain threshold on income inequality, the focus of governments on reducing income inequality should be reduced so that resources are spent on essentials.
Zahra Azizi; Morteza Khorsandi
Volume 17, Issue 53 , February 2013, , Pages 85-100
Abstract
In recent years, several studies have examined the relationship between financial development and economic growth. But even considering the same Indicators of financial development, findings of these studies have been different. The existence of non-linear relationships can be one of the reasons for ...
Read More
In recent years, several studies have examined the relationship between financial development and economic growth. But even considering the same Indicators of financial development, findings of these studies have been different. The existence of non-linear relationships can be one of the reasons for these differences. In this paper using the smooth transition regression method, we examine a nonlinear relationship between financial development and economic growth in Iran. The tests of linearity, transition variable election and transition function determination results confirms the existence of non-linear relationship between financial development and economic growth by considering time trend as a transition variable. The appropriate transition function is LSTR1 that is a logistic function form with one threshold. As a result a regime change in the relationship between financial development and economic growth occurred in about 1989, ( i.e. at the end of the war ). This regime switching can also be considered as a cause for difference in findings of similar studies in Iran.