Economics Research

The Meaning and Concept of Institutions in Institutionalism A Look at Differences between Old and New Institutionalism and the Role of Institutions in Economic Activities

Mahmoud Mashhadi Ahmad

Volume 13, Issue 48 , April 2013, , Pages 49-77

Abstract

  “Institutions matter”. This is what we now see repeatedly in economic texts. But, some economists mentioned this truth more than a century ago. By asserting that mainstream economics has ignored institutions, these economists established a new paradigm, named institutional economics, which ...  Read More “Institutions matter”. This is what we now see repeatedly in economic texts. But, some economists mentioned this truth more than a century ago. By asserting that mainstream economics has ignored institutions, these economists established a new paradigm, named institutional economics, which was, according to their manifesto, “the only way to the right sort of theory.” The crucial point, however, was that this new paradigm was introducing a critical element as the main unit of analysis that could well destroy all aspects of conventional economics. Now, more than one hundred years after the beginning of institutional economics, the science of economics has witnessed many valuable endeavors to imbed institutions in economic analysis. Although valuable, but these efforts has made the concept of institutions more complicated. Indeed, as mentioned by J. R. Commons, from the early stages of the evolution of institutionalism, this concept was tangled. However, after the emergence of New Institutional Economics, we can see more difficulties. Therefore, it is important to pay attention to the meaning and concept of institutions and its relation with individuals. Another issue that this paper is going to shed some light on it, is the role of institutions in economic occasions. Finally, the paper will concentrate on one important and neglected question, which was the main source of Veblen’s attack on orthodoxy, that is, why did mainstream economics ignore institutions?

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Seyyed Safdar Hossini; Habib Shahbazi; Jahangard Halimeh

Volume 10, Issue 38 , October 2010, , Pages 67-86

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Mohssen Mehrara; Hamid Abrishami; Hamid Zamanzadeh Nasr Abadi

Volume 10, Issue 38 , October 2010, , Pages 205-233

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Farhad Tarahomi; Ali Asghar Esfandiary

Volume 10, Issue 38 , October 2010, , Pages 267-286

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An Analysis of Theil Inequality Index in Terms of Different Provinces in Iran

Esmaiel Abounoori; Arash Khoshkar; Pedram Davoudi

Volume 10, Issue 36 , April 2010, , Pages 201-222

Abstract

  Economic inequality in Iran is affected by the existing within inequality and among all provinces in the country as a whole. The main purpose of this article is to analyze the Theil inequality index inequality within and among all provinces including urban and rural regions.   In doing so, ...  Read More Economic inequality in Iran is affected by the existing within inequality and among all provinces in the country as a whole. The main purpose of this article is to analyze the Theil inequality index inequality within and among all provinces including urban and rural regions.   In doing so, the micro 2007 household data is used.  The results show that the share of the urban and rural inequality within provinces is 8% and 11%, respectively. Therefore, inequality between provinces has not considerable effect on the inequality as a whole.  According to these results one may suggest to the macro province policy maker to concentrate on inequality reduction just within the provinces.

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The Effect of Financial Market Development on Economic Growth in Iran: 1966-2007

Reza Akbarian; Seyyed Mohssen Heydaripour

Volume 9, Issue 34 , October 2009, , Pages 43-63

Abstract

  The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has ...  Read More The aim of this paper is to investigate the effect of financial market development on economic growth in the context of the Iranian economy in short and long-run over the period 1966–2007. Two financial developments indices (rate of financial saving to GDP and rate of domestic credit to GDP), has been used in two separate econometric models "Auto-Regressive Distributed Lag (ARDL)" in order to investigates the effects of financial market development on the economic growth. In order to explain the private sector behavior, the rate of claims on private sector to domestic credit has been used as an independent variable. The empirical results in two models suggest that in the short and long run, the financial development has negative effect on economic growth. This result supports the opinion about negative effect of financial development on economic growth in developing countries with a weak control on loans. In both models the influence of openness on economic growth is positive. The results also show the economic adjustment policies had negative effect on economic growth.

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The Survey on Inflution Effectiveness from Total Investment in Iran’s Economy

Ali Esmaieel Zadeh Magharri

Volume 9, Issue 33 , July 2009, , Pages 97-123

Abstract

  The aim of this paper is to investigate the relationship between investment, import and export on inflation in Iran’s economy. First, we talk about inflation theory and then give a short discussion about inflation effects on investment to make sure that our time series are stationary. We use ADF ...  Read More The aim of this paper is to investigate the relationship between investment, import and export on inflation in Iran’s economy. First, we talk about inflation theory and then give a short discussion about inflation effects on investment to make sure that our time series are stationary. We use ADF method. Then we estimate our models. We find out that the relationship between export and import and inflation is positive and the relation between investment and inflation is negative.

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The Effect of Investment Infrastructures on Iran’s Economic Growth

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 ...  Read More 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.

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The Relationship between Interest Rate and Exchange Rate (Reappraisal and Expansion of Quantitative Theory of Money)

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 ...  Read More 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.  

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The Assessment of the Effect of Liberalization of Interest Rate on Investment and Iran’s Economic Growth (By Using Simultaneous Equation System)

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?  ...  Read More 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.

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The Effects of Interest Rate Fluctuations on Iran’s Economy

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 ...  Read More 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.

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The Estimation of Consumption Function in Iran’s Economy

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 ...  Read More 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.

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The Economic Valuation of Recreation Services of Environment Resources, Case: Anzali Wetland

Jamshid Pajooyan; Nemat Falihi

Volume 8, Issue 28 , April 2008, , Pages 147-171

Abstract

  The determination of economic value of environment resources has become significantly important in the light of increasing pollution and environmental deterioration that is getting momentum. On this ground, the necessity of gauging the cost of pollution, preparing the so called "green national accounts", ...  Read More The determination of economic value of environment resources has become significantly important in the light of increasing pollution and environmental deterioration that is getting momentum. On this ground, the necessity of gauging the cost of pollution, preparing the so called "green national accounts", introducing new taxes and levies to contain and prevent further destruction of the environment, has received especial attentions. The very objective of this paper is to determine the recreation value of Anzali Wetland for which the travel cost approach based on household production function has been employed. Generally two approaches are employed in regard to wetland recreation valuation. One is based on demand for travel which takes into account the willingness of individuals to pay for travel expenses. And the second one is based on recreation production function and marginal cost of each travel, taking into account the shadow price of recreation. The present paper has utilized the second approach for the valuation of wetland recreation services introduced by Doctor Pajooyan.J (1987). This approach has benefited from Gary Beaker household production function. The result of this study indicates that  distance and travel expenses have significant effects on the provision of recreation services.  Under competitive condition, marginal cost of recreation is estimated to amount to Rls, 1100000 per day which is take to be the shadow price of recreation. The result also indicates that the recreation demand has a negative relation with the shadow price of recreation and the relation is positive with respect to income of the consumers and this is in line with the theoretical foundation. Moreover, traveler's willingness to pay has a positive relation with income, marital status, level of education, and travel interest, but with respect to quality of wetland, this relation is negative.

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Studying Income Distribution and Money Demand Relationship in Iran

Ahmad Jafari Samimi; Zahra Elmi; Ali Sadeghzadeh Yazdi

Volume 7, Issue 25 , July 2007, , Pages 75-99

Abstract

  In recent centuries, many surveys have been done about money demand function and the variables which affect it, in developed and developing countries. As far as knowing this function accurately, it helps economic planners to adopt suitable monetary and fiscal policies, in order to achieve economic ends. ...  Read More In recent centuries, many surveys have been done about money demand function and the variables which affect it, in developed and developing countries. As far as knowing this function accurately, it helps economic planners to adopt suitable monetary and fiscal policies, in order to achieve economic ends. Besides the known variables which estimate the money demand function, Gini coefficient variable can be used as income distribution variable in this function. In this article, the effect of Gini coefficient on money demand has been studied and evaluated. Also autoregressive distributed lag method (ARDL) and the annual data of 1999-2004 have been used. The results show that real money balance according to limited and wide money definition is cointegration with gross domestic product, rate of  inflation and foreign exchange rate. And sign of Gini coefficient theoretically is not correct. To study short-run analysis of long-run equilibrium the error correction model was used, and the error correction term coefficient shows that, moving towards long-run equilibrium is slow in money market. The stability tests results show the stability of money demand function coefficients. In other words we can accept that money demand function is stable in Iran.

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The Role of Oil Price Shocks in Business Cycles in Iran's Economy

Ali Taiebnia; Fatemeh Ghasemi

Volume 6, Issue 23 , January 2007, , Pages 49-80

Abstract

  Existing literature on the role of oil price fluctuations has mainly focused  on the importer countries and few attempts have been done to analyze the impact of the variability on the oil revenues from the oil producing countries' point of view.  So in this study, the role of oil price shocks ...  Read More Existing literature on the role of oil price fluctuations has mainly focused  on the importer countries and few attempts have been done to analyze the impact of the variability on the oil revenues from the oil producing countries' point of view.  So in this study, the role of oil price shocks in shaping the fluctuations  in Iran's economy by using the seasonal data from 1971– 2003 have analyzed. To this end, at first we should recognize the business cycles in Iran's economy, then by using selective statistical indicators, cyclical behavior of effective key variables on business cycles is computed and analyzed. At the second step, a business cycle model using Vector Auto regression (VAR) is specified and the effects of oil price shocks are analyzed. The results of the research have shown that economy of Iran has experienced seven business cycles and oil factor among other effective factors has played an important role on causing booms and recessions. The result of estimation on VAR model and evaluating the impact of several shocks on production fluctuations indicates that oil price shocks have a long run impact on business cycles in Iran's economy and this effect decreases slowly during the time. In addition, this shocks account for %25 of the production fluctuations. While the instability share of other variables of the model on the production are worthless.

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A Quantitative Analysis of Importance of Vehicle Industry in Iran's Economy

Esfandiar Jahangard

Volume 6, Issue 23 , January 2007, , Pages 183-206

Abstract

  This study analyzes the relevance of the vehicle industry in Iran's Economy with emphasis on the production. In this study, applying Jensen and West (1986) and West (1993) methodologies based on Iran's 1379 Input –Output table, the overall results show that the direct and indirect contribution ...  Read More This study analyzes the relevance of the vehicle industry in Iran's Economy with emphasis on the production. In this study, applying Jensen and West (1986) and West (1993) methodologies based on Iran's 1379 Input –Output table, the overall results show that the direct and indirect contribution of the value added of vehicle industry in entire economy is 2.4 percent.

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The Study of the Effect of Population’s Age Structure on Consumption Long- Term Function

Parviz Mohammadzadeh; Khaled Ahmadzadeh

Volume 6, Issue 22 , October 2006, , Pages 45-70

Abstract

  The study of the relationship between age structure of population with macroeconomic variables and the study of its effects on the growth and development of Iran, has remained so far not to emphasized on. Iran is experiencing an increasing rate of population growth and facing the problems caused by it, ...  Read More The study of the relationship between age structure of population with macroeconomic variables and the study of its effects on the growth and development of Iran, has remained so far not to emphasized on. Iran is experiencing an increasing rate of population growth and facing the problems caused by it, the aftermaths of which will continue well in to the next decades. This study is functional and documental. From the results, it is inferred that the marginal propensity of consumption in equations relating to age groups of population varies in the long term and with confirmation of the long term relation in the function of consumption expenditures of the private sector, the rate of balancing  is slow and variable as well. In the process of economic policy making, the age distribution of population should be taken in to account, so that the measures taken in the way of accelerating of economic growth and planning related to it will accord with the population growth and the increasing changes occurred in its structure.

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An Investigation on Theory of Population- Limited Institutional Approach

Rahim Dallai Esfahani; Reza Esmaielzadeh

Volume 6, Issue 22 , October 2006, , Pages 71-96

Abstract

  Population size and its change have enormous effects on economic growth and development. In this respect vast amounts of researches in economics are devoted to population studies. Malthus theory of population is regarded as a core in population issues, which had created a pessimistic view on population ...  Read More Population size and its change have enormous effects on economic growth and development. In this respect vast amounts of researches in economics are devoted to population studies. Malthus theory of population is regarded as a core in population issues, which had created a pessimistic view on population and its impact on economy, while Malthus theory were challenged by many and specially by Verlhurst, which the latter theory actually outmoded Malthus’ and gained replacement, it is wondering how in the annals of science the Verlhurst theory is forbidden and how there is a consistent acknowledgment of failed pessimistic view of Malthus on population. In this respect, this paper tries to reconsider Malthus and Neo-Malthusian views on population. And also, neglected Verlhust view from a limited institutional approach.  For this purpose, the study of impact of the institutions (like authority and observance of law,       economic freedom,..) and  their improvements on populations receives due attention. In this research we also, in spite of recent Neo-Malthusian views, we pay attention to the positive impacts of population on economic growth. The view which in recent years gained wide acceptance and their followers are expanding rapidly in various academies,   Research used method. In this study is descriptive and authors purposes a reconsideration long growth positive effects of population rather than short run negative effects in economic planning.

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Estimation of Supply of Foreign Direct Investment in Iran

Kambiz Hojabr Kiani; Kiomars Sabzi

Volume 6, Issue 22 , October 2006, , Pages 161-204

Abstract

  Investment is one of the most important issues in economic. For economic growth to take place, investment is a major factor especially in developing countries. In the global atmosphere for survival and growth of countries with high technology and production capabilities, investment is a vital requirement. ...  Read More Investment is one of the most important issues in economic. For economic growth to take place, investment is a major factor especially in developing countries. In the global atmosphere for survival and growth of countries with high technology and production capabilities, investment is a vital requirement.  Therefore foreign financial resources as a complementary are necessary for internal resources. Foreign direct investment (FDI) as a financing method is beneficiary in two ways. First, it will cover the lack of investment. Second, it can serve as a technology transfering tool. Based on all these facts it is critical to investigate the factor effecting foreign direct investment and trying to change those in a suitable manner. In this paper, using econometric model and "Auto-Regressive Distributed Lag" method, we estimated the effect of relevant explanatory variables on FDI. The results of the estimation indicates that: First, there is no long-run (equilibrium) relation for supply of foreign direct investment but there exists a short- run relation. Second, there is a positive correlation between foreign direct investment, GDP, exchange rate, human capital and lagged foreign direct investment. Also the relation between foreign direct investment and inflation, tax, and tariff is negative.

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Volume 6, Issue 21 , July 2006, , Pages 15-55

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Volume 6, Issue 21 , July 2006, , Pages 229-263

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Volume 5, Issue 18 , October 2005, , Pages 81-111

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Volume 5, Issue 18 , October 2005, , Pages 217-235

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Volume 5, Issue 17 , July 2005, , Pages 39-64

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Volume 5, Issue 17 , July 2005, , Pages 113-129

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