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.
Mohammad Hadi Zahidi Vafa; seyyed hasan ghavami
Volume 11, Issue 43 , January 2012, , Pages 239-255
Abstract
Game theory has a significant role in contemporary orthodox
economics. This theory studies the strategic behavior of players. So
strategic interaction is the key point in the games theory. Principalagent
model is an application of the theory. This model is applied
when a job or an activity ...
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Game theory has a significant role in contemporary orthodox
economics. This theory studies the strategic behavior of players. So
strategic interaction is the key point in the games theory. Principalagent
model is an application of the theory. This model is applied
when a job or an activity is delivered to an agent by a firm or another
agent called the principal. Naturally the terms and conditions
including the rights and obligations of two sides are elaborated in the
contract. Depending on whether the information on exact details of the
subject and the terms are the same or not, different models are
developed. One of the most important financing instruments in noninterest
banking as a main field of Islamic Economics is profit-loss sharing contracts among
which we can name sleeping partnership. The subject matter of sleeping partnership
is trade in which a capital owner finances the money needed by the agent to start a business
which is based on profit-loss sharing. This paper tries to construct an analytical model
to explain the sleeping partnership by appling principal– agent model with asymmetric
information case which is causing adverse selection .In this paper we showed that Islamic
finance instruments (sleeping partnership) in the spirit of profit-loss sharing can be explained
through the modern achievements of contemporary economics and we can analyze sleeping partnership with the help of game theory method.
