Morteza Sameti; Marzieh Googerdchian; Ahmad Googerdchian
Volume 10, Issue 37 , July 2010, , Pages 95-113
Abstract
Some economists believe that Economies with the higher degree of economic freedom have a better performance than that of planned economies. This group has ranked countries by various indexes of economic freedom to show how to have access to the world resources. In the literature, there is an emphasize ...
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Some economists believe that Economies with the higher degree of economic freedom have a better performance than that of planned economies. This group has ranked countries by various indexes of economic freedom to show how to have access to the world resources. In the literature, there is an emphasize on the relationship between economic freedom and transaction cost. This reveals the fact that economic freedom followed by free competition, property rights and voluntarily exchanges can decrease transaction cost in the markets, through the reduction in limits.
The goal of this paper is to construct a theoretical framework to discuss the effect of economic freedom on transaction cost. Then, it uses data OECD high income members over 1995-2004.
The empirical results indicate that the selected countries are not only affected by economic freedom by indexes transaction cost consist: (voice and accountability, government effectiveness, control of corruption, regulatory construction and corruption index) while the effect is U shape and convex, that is, an increase in economic freedom results in a decrease in transaction cost but in the process of economic increasing freedom transaction cost rises.
Rahim Dallai Esfahani; Mohsen Renani; Morteza Sameti; Reza Esmaielzadeh
Volume 8, Issue 30 , October 2008, , Pages 15-40
Abstract
In this study, following Barro in an endogenous growth model, we try to determine the characteristic of an optimal economic growth. By considering two kinds of public expenditures that are: public capital and public services. The role and impacts of the regarded parameters such as time preference, depreciation ...
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In this study, following Barro in an endogenous growth model, we try to determine the characteristic of an optimal economic growth. By considering two kinds of public expenditures that are: public capital and public services. The role and impacts of the regarded parameters such as time preference, depreciation rate and change in planning periods on the growth of economy is also investigated. Dynamic optimization is utilized in determination of optimal growth for Iran’s economy. For different planning periods and with various scenarios, the optimal tax and growth rates for variables such as gross national product, public capital, public services, private capital and consumption is simulated. The paper concludes a negative relation between time preference, depreciation and economic growth. It also finds a positive relation between horizons of planning periods and economic growth.
