reza akhbary; hamid amadeh
Volume 15, Issue 59 , January 2016, , Pages 125-160
Abstract
GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different ...
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GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different forms such as difference version, gap version and production function form. Because of much debate that is done in recent years regarding the labour market, in this study with the aim of presenting scientific analysis of current conditions in Iranian economy, we used pesaran et al (2001) approach to estimate long-run and short-run Okun coefficients in an ARDL model and the data is for the period of 1974-2011. We found that there is long run relationship between variables in three models that we used. The results show that to reduse the unemployment rate to less than %10, GDP growth rate must be over %10. These results points to deterioration of current economic conditions. At the end, Analysis of Granger causality showed that there are unidirectional causality relationships in all three forms of Okun’s law.
Mehdi Sadeghi Shahdani; Akbare Komijani; Mohammad Hadi Zahedi Vafa; Mohammad Ghaffary Fard
Volume 12, Issue 47 , January 2013, , Pages 97-122
Abstract
In economic studies, fiscal decentralization theories are used to increase productivity and efficiency of government and to improve the balance between different regions and it is mentioned as one of the fundamental tools in the way of transition to a market economy in developing countries. After Islamic ...
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In economic studies, fiscal decentralization theories are used to increase productivity and efficiency of government and to improve the balance between different regions and it is mentioned as one of the fundamental tools in the way of transition to a market economy in developing countries. After Islamic Revolution in Iran and especially after Iran-Iraq war, fiscal and economic decentralization was officially considered as a strategic policy for the development of Iran’s provinces. Firstly, the Provincial Planning Councils were founded and then the provincial revenue-expenditure system was devised to increase the degree of decentralization. But the main concern of economic planners was to investigate the mechanism of which the fiscal decentralization had an impact on economic growth and income distribution. In this paper, by using augmented Solow model, the direct and indirect effects of fiscal decentralization on economic growth is evaluated. After testing for the stationary of our panel of data, it is confirmed that there is a long-run relationship between variables of the model by using Pedroni and Kao tests. After estimating the model by using generalized least squares (GLS) method, it was shown that during the period of 1379-1386, fiscal decentralization (based on two measures of decentralization of national investment expenditures and decentralization of provincial investment expenditures) had a positive effect on economic growth and income distribution in provinces. This effect was in a way that one percent increase in fiscal decentralization would increase economic growth rate up to 0/04 percent. In addition, fiscal decentralization improve income distribution in provinces and indirectly affects economic growth of different regions.