Manoochehr Asgari; Hamid Tofighi
Volume 9, Issue 33 , July 2009, , Pages 223-246
Abstract
The purpose of this survey is to determine of equilibrium real exchange rate, misalignment and impact of misalignment of real exchange rate on economic growth. According to introducing of new exchange rate literature on 80 decade and econometrics models in recent decades, the model that introduce here ...
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The purpose of this survey is to determine of equilibrium real exchange rate, misalignment and impact of misalignment of real exchange rate on economic growth. According to introducing of new exchange rate literature on 80 decade and econometrics models in recent decades, the model that introduce here is the fundamental Edwards model that adjusted for IRAN. The variables of this survey for determining of real exchange rate are: government expenditure, the ratio of capital investment to GNP, capital account, the ratio of oil and gas revenue to GNP, the excess of money supply to money demand, the difference between parallel and official market exchange rate. The period of this survey is from 1959-2004 Iranian calendars. In this regard we use Johanson test in order to estimate long-run equilibrium real exchange rate and use vector error correction model in order to achieve short time relations and loading factors. After calculating real exchange rate from long-run estimated equation, misalignment could
be calculated from the difference between real exchange rate and estimated equilibrium real exchange rate. As in most years in Iran exchange rates overvalued, when we calculate misalignment and use it for estimating economic growth model, the sign of misalignment was negative and therefore had negative impact on economic growth.
Mir Abdollah Hosseini; Lotfali Agheli Kohne Shahri
Volume 9, Issue 33 , July 2009, , Pages 247-266
Abstract
In this paper, the panel data econometric model has been used for estimating the price, income and Iran's import (from ECO and ECO imports from Iran) elasticities during the 1998-2002 period. The estimated elasticities of mutual Iran-ECO trade indicate that importing and exporting income elasticity, ...
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In this paper, the panel data econometric model has been used for estimating the price, income and Iran's import (from ECO and ECO imports from Iran) elasticities during the 1998-2002 period. The estimated elasticities of mutual Iran-ECO trade indicate that importing and exporting income elasticity, price and substitution elasticities of Iran's imports (from ECO) are 1.21, 0.74,-0.42 and 0.07 respectively, while importing and exporting income elasticities, price and import to GDP ratio elasticities of ECO imports(from Iran) are 0.84, 0.71, 0.6 and 0.45 respectively. Indeed, income elasticity of Iran's imports from ECO members is greater than income elasticity of Iran's exports to ECO, however price elasticity of Iran's exports to ECO is greater than of absolute value of price elasticity of Iran's imports from ECO countries.
Mahdi Taghavi; Hossein Mohammadi
Volume 9, Issue 32 , April 2009, , Pages 15-42
Abstract
The role of capital and investment in the process of economic growth and development has mentioned in many economic theories. Shortage of investment in any country is an incentive for efficient use of investment to increase the economic growth.
In this paper, we compare the productivity of investment ...
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The role of capital and investment in the process of economic growth and development has mentioned in many economic theories. Shortage of investment in any country is an incentive for efficient use of investment to increase the economic growth.
In this paper, we compare the productivity of investment in four economic sectors namely, agriculture, petroleum, industry and services in Iran. For this purpose, we use incremental capital output ratio at first and compute it for these sectors. Then we use an endogenous growth model to assess the impact of investment in these four sectors on economic growth.
Our results show that productivity of investment in petroleum and agriculture is higher that industry and service.
Mahnaz Rabiee; Bijan Bid Abad
Volume 9, Issue 32 , April 2009, , Pages 67-96
Abstract
In this paper, the relationship between exchange rate and interest rate is re-examined through a theoretical expansion and reformulating of the quantitative theory of money. Fisher's theory is expanded to include both internal and external monetary sectors to be considered simultaneously. A framework ...
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In this paper, the relationship between exchange rate and interest rate is re-examined through a theoretical expansion and reformulating of the quantitative theory of money. Fisher's theory is expanded to include both internal and external monetary sectors to be considered simultaneously. A framework for studying the relationship between interest and exchange rate is offered by relating export, import and capital account, net domestic and foreign assets of banking system in a generalized framework of quantitative theory of money and using the theories of interest rate parity and monetary approach to balance of payments. This paper concludes that there is a negative relationship between interest rate and exchange rate, ceteris paribus.
A significant contribution in this paper is the adaptation of transaction value to aggregate supply concepts using United Nations System of National Accounts (1993). This clarification actually removes the vogues of critical issues of the transaction value in macroeconomic analysis.
The proposed theoretical framework is tested for Iran's data. It is concluded that there is a negative relationship between exchange rate and interest rate again.
Hassan Sagheb; Bita Norouzi
Volume 9, Issue 32 , April 2009, , Pages 97-117
Abstract
This paper surveys the grounds of Iran-Turkey trade cooperation in terms of ex-post indicators such as complementary trade index and trade potential index(based on HS 6-digit cods) during 1999-2003.
The results show that Iran and Turkey enjoy complementary trade in the field of oil and non-oil ...
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This paper surveys the grounds of Iran-Turkey trade cooperation in terms of ex-post indicators such as complementary trade index and trade potential index(based on HS 6-digit cods) during 1999-2003.
The results show that Iran and Turkey enjoy complementary trade in the field of oil and non-oil goods. This is particularly obvious in the field of mechanical and electronic machinery and equipment. The calculations indicate that Iran's import and export potentials in trade with turkey are $4.7 bn and $1.4 bn respectively. Despite the considerable potentials in bilateral export and import of non-oil goods, both countries' policies have failed to take advantage of existent trade capacities. Therefore, the adoption of trade cooperation expansion policies in the form of preferential trade arrangements could facilitate and enhance trade flows between two countries.
Seyed Komail Tayebi; Mohammad Vaez Barzani; Simin Akbari Dehbaghi
Volume 9, Issue 32 , April 2009, , Pages 119-145
Abstract
The main objective of this paper is to investigate the possibility of a regional block implementation including Iran and other Middle East countries, and also it’s effect on trade relation and income convergence among members. Accordingly, a trade gravity model is specified in which economic structures ...
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The main objective of this paper is to investigate the possibility of a regional block implementation including Iran and other Middle East countries, and also it’s effect on trade relation and income convergence among members. Accordingly, a trade gravity model is specified in which economic structures of all trading partners and their social and cultural relations as well as integration and geographical distance explain trade flows and income convergence. We, therefore, use economic datas of 12 Iran’s trading partners in the region over 1993-2003 to estimate the models (both trade and convergence) by the panel data procedure.
The empirical results indicate that trade integration between Iran and Middle East countries has a positive and significant effect on their trade relations, whereas trade expansion cannot convergence their incomes significantly.
Mahmood Daneshvar Kakhki; Siavash Dehghanian; Ali Firooz Zarea
Volume 9, Issue 32 , April 2009, , Pages 147-166
Abstract
Estimating liquidity demand function considered as an instrument of designing effective policies on money balance. Based on different lookouts, economists represent different models. By using Iran´s time series data of 1974-2001, this study have estimated long-run relationship of money demand; ...
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Estimating liquidity demand function considered as an instrument of designing effective policies on money balance. Based on different lookouts, economists represent different models. By using Iran´s time series data of 1974-2001, this study have estimated long-run relationship of money demand; moreover, this have tried to investigate effects of short-run shocks on money demand. Results depicted that income, oil incomes, exchange rate and interest rate influence on money demand in short-run; furthermore, there is a long-run relationship between these variables and money demand. Also, on condition that a shock comes to across to money demand, only twenty six percent of this shock will be adjusted.
Alireza Karbasi; Behzad Hassani Shirvanshahi
Volume 9, Issue 32 , April 2009, , Pages 239-261
Abstract
The purpose of this paper is to provide an understanding of how the export credit worthiness of an importing country affects export sales of agricultural and other manufactured products and how export credit guarantee or insurance can mitigate risk of nonpayment. This paper makes a contribution to specific ...
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The purpose of this paper is to provide an understanding of how the export credit worthiness of an importing country affects export sales of agricultural and other manufactured products and how export credit guarantee or insurance can mitigate risk of nonpayment. This paper makes a contribution to specific literature on how export credit risk affect agricultural and other exports, and also contributes to the broader literature on international trade theory by showing that risk is indeed an economically significant factor in trade.
Data on export values per capita were obtained from three different source data for 2007 Iranian export values for all industries and for agricultural and related services industries were obtained from statistic of Iran׳s trade data online. This data set consists of over 117 different countries matched to their credit scores. To confirm the generality of the result, also trade data were obtained for Iran, Canada and Australia from
the international trade statistics yearbook published by the World Bank. A theoretical model is developed. It shows how risk mitigation through export credit insurance could increase exports to high-risk importing countries.
Results show that there is a significant positive relationship between credit worthiness and export values.
Sadegh Bakhtiari; Behnam Salem
Volume 8, Issue 31 , January 2009, , Pages 15-27
Abstract
This article aims to investigate the impacts of trade liberalization on export and import of industrial commodities through estimating of substitution elasticity of industrial commodities, in terms of two digits codes, in global markets; and also estimating of trade liberalization impact on export and ...
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This article aims to investigate the impacts of trade liberalization on export and import of industrial commodities through estimating of substitution elasticity of industrial commodities, in terms of two digits codes, in global markets; and also estimating of trade liberalization impact on export and import of industrial commodities using dummy variable.
Our estimations show that average tariff dose not effect export; the relationship between per capita capital and export is negative; elasticity of export to liberalization is 1.36 and elasticity of export to real exchnge rete is less than unit. Substitution elasticities all, except code of 37, are less than unit. Codes of 32, 37, 31, 36 and 35 have the highest export, and code of 33 has the least export.
On the side of import, the estimations are as follow: trade liberalization has negative impact on import and results of substitution elasticites are mixed. In codes of 34, 31, 32 and 35 the estimated elasticities are not significant. In codes of 38, 36, 33 and 39 the substitution elasticity is negative and in code of 37 is positive.
In general, the impact of trade liberalization on export is more than import sector. The results show that this policy has positive impact on productivity and at the same time there is a negative relationship between capital accumulation and export; and a positive relationship between capital accumulation and import. This means Iran according to Hecher- Ohlin theory has advantage in labor intensive commodities.
Akbar Keshavarzian peyvasti; Ali Azimi Chanzagh
Volume 8, Issue 31 , January 2009, , Pages 29-57
Abstract
The main objective of this research is to settle the fundamental challenges in financial sector, that is to say, "liberalization of Interest Rate". In effect, the main question of research is "How can the liberalization of interest rate on macro economic variables in the course of research be evaluated? ...
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The main objective of this research is to settle the fundamental challenges in financial sector, that is to say, "liberalization of Interest Rate". In effect, the main question of research is "How can the liberalization of interest rate on macro economic variables in the course of research be evaluated? To this end, the literature of the issue of research will be initially reviewed such as: Maxwell, Gupta, Rubini & Martin, Warman & Tirlwall, Westhead & Storey, Then the research model in question will be elaborated and its basic theory will be briefly presented. The effect of interest rate on macro economic variables with the emphasis on the theoretical aspects interest rate can be calculated on the basis of Fisher identity, systematic model using three stage least square (3SLS). In the simultaneous equations system, money demand function, investment and growth have been estimated and with approve of Mckinon-Show theory in Iran, the positive effect of financial liberalization on investment and economic growth has been determined.
Hamid Reza Horry; Seyyed Abdolmajid Jalaie; Fatemeh Irani Kermani
Volume 8, Issue 31 , January 2009, , Pages 59-89
Abstract
In this paper, first, financial markets have been analyzed and then financial institutions in economy, in addition to industrial and mineral investments in developed and developing countries, specially Iran, have been compared. Using estimation method 3SLS, the selected model has been estimated. The ...
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In this paper, first, financial markets have been analyzed and then financial institutions in economy, in addition to industrial and mineral investments in developed and developing countries, specially Iran, have been compared. Using estimation method 3SLS, the selected model has been estimated. The model consists of a trilogy, the variable functions of which are private investment in the industry and mine sector, public investment in industry and mine sector and the amount of liquidity. Balance of bank credits to the none governmental sector, risk index, bank's credit rates, real exchange rate, inflation rate, domestic national product and governments indebtedness to commercial and specialized banks being the independent variables.
According to the results of the research, the bank's interest rate creates no sensitivity in the investment of the private sector in industry and
mine in Iran; but the balance of the banking credit to the none governmental sector in industry and mining sector has had a positive effect on the private investment in industry and mine.
Alimorad Sharifi; Mahdi Sadeghi Shahdani; Abedin Ghasemi
Volume 8, Issue 31 , January 2009, , Pages 91-119
Abstract
The allocation of subsidies payment has been mentioned in both articles 46 and 47 of the Third Socio-Economic, and Cultural Development Plan. The global oil price fluctuations and their direct impacts on the Iranian national budget allocations has resulted in energy subsidies payment to be one of the ...
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The allocation of subsidies payment has been mentioned in both articles 46 and 47 of the Third Socio-Economic, and Cultural Development Plan. The global oil price fluctuations and their direct impacts on the Iranian national budget allocations has resulted in energy subsidies payment to be one of the most challenging issues in the Iran’s economy. The objective of this research is the assessment of inflationary impacts of energy subsidy removal by using an energy input-output price model. The findings indicate that the costs of production in the different economic sectors will rise following energy prices increase. The inflationary impacts in non-metallic mineral products, forestry, and petroleum products will be the highest while the electricity price increase has dominant role in price inflation. The significant changes will happen in the macroeconomic variables such as private consumption expenditures, government consumption expenditures, gross fixed capital formation, as well as exports.
Gholamhossein Mahdavi; Seyyed Mehdi Hosseini Azan Akhari
Volume 8, Issue 31 , January 2009, , Pages 121-146
Abstract
In this research we are to investigate the existence of relationship between refined economic value added and usual measurements of performance such as earnings per share and price to earning ratio.
The results show that there is no significant relation between refined economic value added and the dependent ...
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In this research we are to investigate the existence of relationship between refined economic value added and usual measurements of performance such as earnings per share and price to earning ratio.
The results show that there is no significant relation between refined economic value added and the dependent variables. Although the existence of mentioned correlation has not proved but it does not mean that there is no relation between variables. The percent of correlation coefficients and calculated R-squared show that there is a weak relation between refined economic value added and usual measurements of performance such as earning per share and price to earning ratio. Nevertheless the relation is more significant for price to earning ratio than earning per share.
Reza Raei; Saeed Shirzadi
Volume 8, Issue 31 , January 2009, , Pages 147-170
Abstract
By studying the efficient market theory, the new financial management has confirmed the existence of calendar anomalies such as daily transaction effect, special monthly effect, holiday effect, etc as well as non calendar anomalies like initial public offering stock effect, neglected firm stock effect, ...
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By studying the efficient market theory, the new financial management has confirmed the existence of calendar anomalies such as daily transaction effect, special monthly effect, holiday effect, etc as well as non calendar anomalies like initial public offering stock effect, neglected firm stock effect, political cycle effect, etc and acknowledges them as anomalies of the efficient market theory. In fact, the recognition and existence or non existence tests of these anomalies is a new subject within the investment arena in recent years and several studies have been carried out in this regard by using different experiments specially time series and regression model with dummy variables, which are much observable in developed as well as emerging markets. By scrutinizing calendar and non calendar effects as well as full description of the efficient market theory anomalies, a sample of these effects known as “The effect of special months on Tehran Stock Exchange (TSE) is studied and the produced results of the study is used to test the efficiency of TSE.
Mohssen Dastgir; Seyyed Hossein Sajadi; Javad Moghadam
Volume 8, Issue 31 , January 2009, , Pages 171-189
Abstract
We developed three Logit models for estimating the rating of prediction of bankruptcy for listed firms in Tehran Stock Exchange (TSE).
The first phase of study examines the existence of any significance statistical differences between the financial statement data of successful and unsuccessful firms, ...
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We developed three Logit models for estimating the rating of prediction of bankruptcy for listed firms in Tehran Stock Exchange (TSE).
The first phase of study examines the existence of any significance statistical differences between the financial statement data of successful and unsuccessful firms, if there will be any significant association between financial ratios and probability of bankruptcy, we want to see which ratios have a greater association with probability of bankruptcy. There are some significant differences between the two groups, from the financial activity indexes, liabilities position (financial leverage) points of view. However, the differences for liquidity not passed the test of significance.
In this study we developed the Logit model with a Wald methodology to predict the rating of the firms with a reasonable accuracy.
Leila Karimian; Ali Reza Daghighi Asli
Volume 8, Issue 31 , January 2009, , Pages 191-218
Abstract
Insurance industry has been changed with development ICT as well as other industries. Studies showed that; using e-insurance has created representation of more effective, direct and cheaper goods and services for insurance companies. Business competitive pressures at insurance industry and changing expectations ...
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Insurance industry has been changed with development ICT as well as other industries. Studies showed that; using e-insurance has created representation of more effective, direct and cheaper goods and services for insurance companies. Business competitive pressures at insurance industry and changing expectations of customers have necessitated using of IT certainly; evolution of ICT is affected on insurance industry in this century. Affection of this evolution is caused innovation on quality and quantity of services and more important effect on marketing styles and sales of insurance. Moreover very new discussion is expressed particularly in related with e-insurance. In this research, we try to rank the insurance services and products in order to electronic sale. Survey methods are used to gather the data and silver modelling is used to analyze it.
Reza Najarzadeh; Mohammad Rezaeipour; Majid Aghaei
Volume 8, Issue 31 , January 2009, , Pages 219-239
Abstract
In this study we have investigated income and price elastisities of consumption and selling of household of cities in Iran in period 1353 until 1385, by using Almost Ideal Demand System and Habit Formation Linear Expenditure system. The result of study by analysis of toll aggregation current trend ...
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In this study we have investigated income and price elastisities of consumption and selling of household of cities in Iran in period 1353 until 1385, by using Almost Ideal Demand System and Habit Formation Linear Expenditure system. The result of study by analysis of toll aggregation current trend shows that consumption and selling tax rates in Iran, determine without allocation and distributive effects of indirect taxes and also income and price elasticity.
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.
Ali Falahati; Saeed Solaymani
Volume 8, Issue 30 , October 2008, , Pages 125-152
Abstract
With regard to globalization process which lies in front of developing countries, finding a trade commercial pattern for countries in the world trade with a suitable trade partners and those countries which don’t want to be left behind in the world trade, is a necessary and important task. In this ...
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With regard to globalization process which lies in front of developing countries, finding a trade commercial pattern for countries in the world trade with a suitable trade partners and those countries which don’t want to be left behind in the world trade, is a necessary and important task. In this study the trade pattern of intra industry and inter industry of Iran in the year 2003 has been investigated with the gravity model. The results show that Iran in the iron and iron alloys sector and non alcoholic beverages and tobacco is functioning with intra-industry and differentiated product pattern, a fact which shows the stability of intra industry pattern of Iran in the regional and global level in these sectors.
Ebrahim Rezaie; Mojtaba Bahmani; Alireza Hirad
Volume 8, Issue 30 , October 2008, , Pages 197-217
Abstract
According to macroeconomic theories, interest rate is investment cost which is important in decision process that organized by private sector. But, there aren’t any consensus among economists about this hypothesis. Also from theoretical point, the effects of interest rate variation on saving ...
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According to macroeconomic theories, interest rate is investment cost which is important in decision process that organized by private sector. But, there aren’t any consensus among economists about this hypothesis. Also from theoretical point, the effects of interest rate variation on saving rate is ambiguous. In fact, it is not clear that what will be the sign of elasticity of saving respect to interest rate fluctuations? therefore, in this paper, we assessed the simultaneous effects of interest rate on economy by macroeconomic model framework. We found that the interest rate have negative, but negligble, impact on investment of private sector.
Nader Gholi Ghourchian; Gholamreza Heydari Kord Zanganeh
Volume 8, Issue 30 , October 2008, , Pages 219-257
Abstract
The main aim of this study is to present a suitable model for promoting and developing privatization system scientifically in Iran. In line of this purpose, the main concentration was put on reviewing Iranian and global literature, examining scientific and executive experiences of the researchers, studying ...
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The main aim of this study is to present a suitable model for promoting and developing privatization system scientifically in Iran. In line of this purpose, the main concentration was put on reviewing Iranian and global literature, examining scientific and executive experiences of the researchers, studying and taking into view main privatization parameters and expertise of the experts as well. Then, questionnaires consisting privatization parameters were distributed to test validity and reliability of Cronbakh Alpha coefficient and duly confirmed. To analyze the data collected, two sets of statistical descriptive methods such as frequency, percent and multi variable analysis were also used.
Seyed Komail Tayyebi; Karim Azarbayjani; Shirin Mesrinejad
Volume 8, Issue 29 , July 2008, , Pages 131-151
Abstract
International competitiveness consists of many factors which influence the behavior of an economy. Many measurements of international competitiveness have been developed to be used for predicting the trend of trade. They are used for the analyzing trade relations between countries to show to which extent ...
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International competitiveness consists of many factors which influence the behavior of an economy. Many measurements of international competitiveness have been developed to be used for predicting the trend of trade. They are used for the analyzing trade relations between countries to show to which extent are efficient. In fact, those factors that determine such efficiency are both qualitative (such as sale services) and quantitative in which the later one focus on prices and costs according to the most empirical studies.
The objective of this paper is to measure the degree of the international export competitiveness among the Iran’s trading partners over the period 1995-2003.
Nikzad Manteghi; Mahdi Taghavi
Volume 8, Issue 29 , July 2008, , Pages 181-204
Abstract
Concurrent with the acceleration of international export & import, there is a tendency toward the Preferential Trade Agreements (PTA) among all countries, including the Asians. Indeed, they have a twice propensity of joining WTO and making up the regional contracts at the same time. By now about ...
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Concurrent with the acceleration of international export & import, there is a tendency toward the Preferential Trade Agreements (PTA) among all countries, including the Asians. Indeed, they have a twice propensity of joining WTO and making up the regional contracts at the same time. By now about 97% of world trade belongs to such countries which are the members of at least one PTA, comparing to their share of 72% in 1990.
PTA is an agreement between several countries which their tariffs on produced commodities less than what the non-members should afford. Asia and Middle East are among the regions of which have such a contracts; either bilateral or regional. The point among the Islamic neighbors such as Iran, Pakistan and Turkey is very familiar.
In this study, using the methodology of SMART model, we check the effects of Trade Creation (TC) and Trade Diversion (TD) of Iran for either Pakistan or Turkey and vice versa.
Moloud Ahmad; Ahmad Tashkini; Amir Reza Soori
Volume 8, Issue 28 , April 2008, , Pages 15-39
Abstract
This survey tries to estimate the consumption function in iran’s economy with the purpose of deriving the long-run and short-run marginal propensities to consumption. In this study, the annual frequency of data in the range of 1991- 2003 is used, and the ARDL method is employed to run the model.
The ...
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This survey tries to estimate the consumption function in iran’s economy with the purpose of deriving the long-run and short-run marginal propensities to consumption. In this study, the annual frequency of data in the range of 1991- 2003 is used, and the ARDL method is employed to run the model.
The results indicate that long-run and short-run marginal propensities to consumption from disposable income, are 0.49 and 0.39. It means that one percent increase in disposable income leads to 0.49 and 0.39 percent increase in consumption(in the long-run and short-run, respectively). Also liquidity has a positive significant effect on private sector consumption.
Parviz Mohammadzadeh
Volume 8, Issue 28 , April 2008, , Pages 41-72
Abstract
Budget deficitis the result of financial polices in economics. Using of these polices has significant and important effect on economy. The most important question about increasing of government debt or budget deficit is whether it is able to change the real variable in economy or not. We can find answer ...
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Budget deficitis the result of financial polices in economics. Using of these polices has significant and important effect on economy. The most important question about increasing of government debt or budget deficit is whether it is able to change the real variable in economy or not. We can find answer to this question by analyzing the outcome of budget deficit in short-run and long- run. In order to answer the question, relationship between budget deficit and money demand has been surveyed in this paper. In this paper, we survey the effect of budget deficit on money demand. There are three main theories: 1) Keynesian theory 2) Neoclassical theory and 3) Ricardian equivalence theory. The result based on econometrics models by using Iran economy data indicated that there is a long-run dynamics relationship between budget deficit and money demand.
