Reza Maaboudi; Zeynab Dare Nazari
Abstract
This paper aims to study the relationship between financialization and the variables of income distribution and economic growth in Iran during 1988:q1 -2019:q4. To analyze the relationship, the continuous wavelet transform approach and to explain the results with empirical facts, the regression ...
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This paper aims to study the relationship between financialization and the variables of income distribution and economic growth in Iran during 1988:q1 -2019:q4. To analyze the relationship, the continuous wavelet transform approach and to explain the results with empirical facts, the regression approach with Mixed Data Sampling (MIDAS) have been used. Results of the wavelet transform show that, in the short-run, there is a positive coherency between financialization and income inequality; so that during 1989-2007 and 2014-2019, financialization is the leading and cause of income inequality. Also, in the short run, there is a negative coherency between financialization and economic growth; in a way that during 1989-2019 financialization is the leading and cause of economic growth. The results of the MIDAS approach also show that in addition to financialization, the variables of government expenditures, economic growth, inflation, and sanctions have a positive and significant effect, and the policy of targeted subsidies has a negative and significant impact on income inequality. Also, financialization, government expenditures, income inequality, inflation, and economic sanctions have a negative and significant effect, and physical capital, employment, and degree of trade openness have a positive and significant effect on economic growth. As a result, the phenomenon of financialization accompanied by the imposition of economic sanctions and government policies, on the one hand, leads to an increase in the wage and income gap between the real sector and the financial sector, and, on the other hand, their effects leave a negative impact on economic growth by the diversion investment to unproductive activities.
Narges Ahmadvand; Mohammad Alizadeh; Mohammad Hassan Fotros; Mahbobeh Delfan
Abstract
The government expenditure in economic affairs can act as a tool for creating and sustaining development by improving income distribution. Therefore, prioritization and optimal allocation of economic expenditures of governments will be so important. In this regard, the present study has investigated ...
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The government expenditure in economic affairs can act as a tool for creating and sustaining development by improving income distribution. Therefore, prioritization and optimal allocation of economic expenditures of governments will be so important. In this regard, the present study has investigated the impact of government expenditure on economic sector and related sub-sectors (agriculture, industry and mining, trade, information technology, energy, housing, transportation, environment, cooperatives affairs, and water resources) on income distribution in Iran's economy during business cycles. In this study, Markov Switching Auto Regressive model (MSAR) has been used to estimate time-series data during the time period between 1973 to 2019. The result of the study indicates that economic sector and agricultural, water resources and transportation subsectors during business cycles, “housing, trade, and cooperative affairs” subsectors during the boom periods, and the environment subsector during the recession periods have reduced income inequality significantly. Also, the government expenditure in industrial, mining, and energy subsectors during business cycles and information technology subsector during the boom periods have increased income inequality significantly. Finally, the subsectors of agricultural, water, industry and mining, commerce and cooperation, transportation have been more stable in the recession regime. Meanwhile, the economic sector and subsectors of information technology, housing and development, environment and energy have been more stable in the boom regime. Therefore, the components of government expenditure on income distribution have asymmetric behavior.
Ali Asqhar Salem; Habib Morovat; Reza Bakhtiarinejad
Abstract
Nowadays, Information and Communications Technology is growing rapidly due to the considerable increase in using knowledge-based theories in all countries, especially in developing economies such as Iran. As a non-competitive technology with unlimited use capacity, Information and Communications ...
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Nowadays, Information and Communications Technology is growing rapidly due to the considerable increase in using knowledge-based theories in all countries, especially in developing economies such as Iran. As a non-competitive technology with unlimited use capacity, Information and Communications Technology entry in the general application and social life shows its potential to affect social welfare. This study will evaluate the impact of Information and Communications Technology on Sen's Social Welfare Index in Iranian provinces using data from 2011 to 2016. The paper uses Feasible Generalized Least Squares method to capture variance heteroscedasticities and cross-section correlations. The results indicate that Information and Communications Technology has a significant and positive effect on Iranian social welfare. Moreover, variables such as industrialization, government spending, and urbanization have a substantial and positive impact on social welfare. The inflation rate, on the other hand, has a significant and negative effect.
Ali Mazyaki
Abstract
In 2010, an extensive program of cutting subsidies was implemented in Iran; and at the same time, a cash subsidy was redistributed to vast majority of country population. One announced goal of this plan was to improve income distribution. In this study, we evaluate the effects of targeted ...
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In 2010, an extensive program of cutting subsidies was implemented in Iran; and at the same time, a cash subsidy was redistributed to vast majority of country population. One announced goal of this plan was to improve income distribution. In this study, we evaluate the effects of targeted subsidy program on income distribution. This is important because the program is to be continuing and studies such as this one may be useful for identifying possible issues to avoid future drawbacks. To achieve this, using the data of "Household Income and Expenditure Survey" by Statistical Center of Iran, we run an Oxaca-Blinder micro-simulation model during the years before and after the implementation of the first phase of this policy. In this model, mitigations are provided for sampling error, differences in regional price index and the coexistence of sanctions. Based on our results, while distribution of expenditures is sharply more equal after 2010, the simulated purchasing powers are not so; moreover, more equitable distribution of expenditures is mostly because of losing opportunities.
Ali Nasiri Aghdam; Ashraf Razmi
Volume 15, Issue 58 , October 2015, , Pages 61-82
Abstract
In this paper, to evaluate income and distributional effects of Personal Income Tax, a hypothetical society is simulated. 12 income sources are defined that each member of society can earn income from one income source or more. Then, using FORTRAN programming, the government's tax income, income distribution ...
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In this paper, to evaluate income and distributional effects of Personal Income Tax, a hypothetical society is simulated. 12 income sources are defined that each member of society can earn income from one income source or more. Then, using FORTRAN programming, the government's tax income, income distribution and average tax rate are calculated, assuming five alternative Scenarios: 0. Base scenario: taxing personal income at source according to "Direct Income Taxes Act"; 1. taxing the sum of incomes each individual person earns from different businesses he or she owns and exempt his / her business income once; 2. taxing the sum of incomes each person earns from non-exempt sources and exempt his / her business income once; 3. taxing the sum of incomes each person earns from exempt and non-exempt sources and exempt his / her business income once; 4. qualifying third scenario by accepting a 1 billion Rials as exemption. Results of simulation indicate that the government's income and income equality is maximized in 3rd scenario.
Alireza Shakibaei; Zahra Kamal-e-Dini; Fatemeh Taleghani; Mohammadreza Ahmadi-Nejad
Volume 15, Issue 57 , July 2015, , Pages 109-140
Abstract
Regional inequalities have always been one of the concerns of the government planners and they have attempted to recognize these inequalities and devise particular policies to curb them. The motivation to work on this domain has led to the development of different indices and techniques to measure regional ...
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Regional inequalities have always been one of the concerns of the government planners and they have attempted to recognize these inequalities and devise particular policies to curb them. The motivation to work on this domain has led to the development of different indices and techniques to measure regional inequalities. β-convergence examination is one of the aforementioned methods of measuring income distribution. An important point is that, urbanization trend cannot be examined apart from economic variables either in Iran or in other countries of the world and economic variables such as households’ income are expected to be affected by the degree of urbanization. Consistent with this reasoning, we can say that urbanization is one of the effective factors on income distribution; therefore, the present paper is focused on the examination of urbanization effects upon convergence rate of income distribution between urban and rural areas in 25 selected provinces of Iran during the time period of 2001-2011 using general spatial econometric model and ordinary least squares (OSL) method. The findings indicated the existence of income distribution convergence among the examined provinces during the above-mentioned period. Moreover, during this period and following the increasing degree of urbanization, the conditional convergence rate for decreasing the gap between current income of urban and rural and its steady state equilibrium is increased as compared with the absolute convergence rate.
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.
Ali Ghanbari; Majid Aghaei; Mahdieh Rezagholizadeh
Volume 11, Issue 40 , April 2011, , Pages 1-29
Abstract
Abstract Since the financial development can exert a significant effect on the distribution of income; in this paper we would investigate the relationship between the financial development and inequality in Iran. So, we estimate this relationship ...
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Abstract Since the financial development can exert a significant effect on the distribution of income; in this paper we would investigate the relationship between the financial development and inequality in Iran. So, we estimate this relationship by applying the Generalized Method of Moment (GMM) Techniques and testing the alternative existing theories in the period of 1350 - 1385. Based on our results in this essay a negative and linear relationship between financial development and inequality is approved in Iran. However, empirical results show that there is little evidence supporting the non-linear inverted U-shaped hypothesis in Iran.
Abbas Assari Arani; Lotfali Agheli; Saeid Shafiei; Meysam Rasoli Mir
Volume 11, Issue 40 , April 2011, , Pages 31-48
Abstract
Abstract Fair distribution of income has been considered as the most important economic issues in different countries. In recent years, the quality of income distribution and the impact of macroeconomic policies on that has been more considered, ...
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Abstract Fair distribution of income has been considered as the most important economic issues in different countries. In recent years, the quality of income distribution and the impact of macroeconomic policies on that has been more considered, especially after the issue of poverty reduction projects in the world. In today's world, the biggest factor causing poverty is not the lack of income, but it is the unfair distribution. Currently, majority of economists, considered the income distribution as one of the goals of government economic programs and the impact of fiscal policy on that as very important. This paper seeking for examination of the effect of fiscal policies on income distribution in IRAN. For this purpose we use a quantile regression model. In summary, the results show that the government's fiscal policies that impact on the Gini coefficient is not constant, but between different quantiles is different. While these policies in low quantiles do not have significant effects on income distribution, but their effects on the high quantile income distribution is quite significant.
