Document Type : Research Paper


1 Ph.D. in Economical Sciences, Urmia University, Urmia, Iran

2 Professor, Department of Economics, Urmia University, Urmia, Iran


The role of deep hapbit in countercyclical behavior of mark-up and its impact on the transmission of monetary and fiscal shocks have already been studied, but its strength in the presence of Philips curve with price stickiness is not clear. The purpose of this study is to develop a New Keynesian Philips Curve (NKPC) following Cristiano et al. (2005), to investigate the simultaneous effect of price stickiness and deep habits on monetary and fiscal shock transmission using Markov- switching stochastic dynamic general equilibrium (MS-DSGE) model for the Iranian economy. The results of impulse-response functions show reducing markup for one period due to deep habits and then increasing markup and inflation after a period due to a stronger role of price stickiness. Moreover, although the negative effect of wealth due to government spending is compensated by deep habits consumption and thus makes consumption increase, it is weak in comparison to the strength of expected inflation, and therefore, inflation increases eventually. Overall, the results of this study indicate that deep habits cannot be a dominant factor in the transmission of monetary and fiscal shocks, but according to the obtained impulse response functions, it can be the strong reason to delay increasing inflation. Also, deep habits consumption can be a good reason for increasing consumption and compensating of the negative effect of wealth due to fiscal shock.


توکلیان، حسین. (1391). بررسی منحنی فیلیپس کینزی جدید در قالب یک مدل تعادل عمومی پویای تصادفی برای ایران. مجله تحقیقات اقتصادی، 47(3)، 1-22.
توکلیان، حسین. (1394). سیاست­گذاری پولی بهینه، مبتنی بر قاعده و صلاحدیدی در جهت رسیدن به اهداف تورمی برنامه­های پنج ساله توسعه: یک رویکرد تعادل عمومی پویای تصادفی. فصلنامه پژوهش­های پولی- بانکی، 8(23)، 1-38.
صیادی، محمد، شاکری، عباس، محمدی، تیمور و بهرامی، جاوید. (1395). تکانه­های تصادفی و مدیریت درآمدهای نفتی در ایران؛ رویکرد تعادل عمومی تصادفی پویا (DSGE). فصلنامه پژوهشنامه اقتصادی، 16(61)، 33-80.
فخر حسینی، سید فخر الدین. (1393). ادوار تجاری حقیقی تحت ترجیحات مصرفی و فراغت در اقتصاد ایران: رهیافت تعادل عمومی پویای تصادفی. فصلنامه علمی- پژوهشی مطالعات اقتصادی کاربردی ایران، 3(11)، 81-106.
فخر حسینی، سید فخر الدین. (1395). مدل ادوار تجاری حقیقی با شکل­گیری عادات: راه حلی برای معمای صرف سهام. فصلنامه مدلسازی اقتصادی، 10(3) پیاپی (35)، 141-169.
کمیجانی، اکبر و توکلیان، حسین. (1390). تحلیل و آزمون عدم تقارن در رفتار سیاستگذاری پولی بانک مرکزی. تحقیقات مدلسازی اقتصادی، ۲ (۶) ، ۱۹-۴۲.
کمیجانی، اکبر و توکلیان، حسین. (1391). سیاست­گذاری پولی تحت سلطه مالی و تورم هدف ضمنی در قالب یک مدل تعادل عمومی پویای تصادفی برای اقتصاد ایران. فصلنامه تحقیقات مدل­سازی اقتصادی، 2(8)، 87-117.
همتی، مریم و توکلیان، حسین. (1398). ارزیابی و مقایسه الکوهای مختلف قیمت­گذاری بنگاه در اقتصاد ایران (رویکرد DSGE). فصلنامه پژوهش­های پولی- بانکی، 11(38)، 655-698.
مرزبان، حسین، دهقان شبانی، زهرا، رستم زاده، پرویز و ایزدی، حمیدرضا. (1395). محاسبه رفاه با سناریوهای متفاوت سیاست مالی در چارچوب مدل سیاست پولی و مالی بهینه. فصلنامه مدلسازی اقتصادی، 10(4)، پیاپی (36)، 25-51.
Cantore, C., Levine, P., and Melina, G. (2014). Deep versus superficial habit: It's all in the persistence. School of Economics Discussion Papers 0714, School of Economics, University of Surrey.
Christiano, LJ., Eichenbaum, M., & Evans, C. (2005). Nominal rigidities and the dynamic effects of a shock to monetary policy. J. Polit. Econ, 113, 1–45.
Fakhrhoseini, S. F. (2011). The Dynamic Stochastic General Equilibrium  Model of Monetary Business Cycle for Iran. Journal of Economic Modeling Research, 1(3), 1-28., [in Persian]
Fakhrhosseini, S. F. (2017). Real Business Cycles Model with Habits  Formation: A Resolution of the Equity Premium Puzzle. Quarterly Journal of economical modelling, 10(35), 141-169. [in Persian]
Farmer, REA., Waggoner, DF., and Zha, T. (2011). Minimal state variable solutions to Markov-switching rational expectations modelsJournal of Economic Dynamics and Control, 35(12), 2150-2166.
Foerster, A., Rubio-Ramirez, J., Waggoner, D., and Zha, T. (2013). Perturbation Methods for Markov-Switching Models. Federal Reserve Bank of Atlanta, Working Paper 2013-1.
Hematy, M., and Tavakolian, H. (2019). Evaluation of Price Setting Models in Iran’s Economy (DSGE Approach). Journal of Monetary and Banking Research, 11(38), 698-655. [in Persian]
Jacob, P. (2013). Deep habits, price rigidities and the consumption response to government spending. CAMA Working Papers 2013-72, Centre for Applied Macroeconomic Analysis. Crawford School of Public Policy. The Australian National University.
Kim, CJ., and Nelson, CR. (1999). State-space models with regime switching. MIT Press. Cambridge. MA.
Komijani, A., and Tavakoliyan, H. (2012). Testing the Asymmetries in Central Bank Reaction Function:The Case of Iran. Journal of Economic Modeling Research, 2(6), 19-42., [in Persian]
Komijani, A., and Tavakolian, H. (2012). Monetary Policy under Fiscal Dominance and Implicit Inflation Target in Iran: A DSGE Approach. Journal of Economic Modeling Research, 2(8), 87-117.,  [in Persian]
Leith, C., Moldovan, I., and Rossi, R. (2015). Monetary and fiscal policy under deep habits. Journal of Economic Dynamics & Control, 52, 55-74.
Lubik, T.A., and Teo, W.L. (2011). Deep Habits in the New Keynesian Phillips Curve. Federal Reserve Bank of Richmond. Working Papers, 11-08.
Maih, J. (2014). Efficient Perturbation Methods for Solving Regime-Switching DSGE Models. Working Papers from Centre for Applied Macro- and Petroleum economics (CAMP). BI Norwegian Business School.
Marzban, H., Dehghan, Z., Rostamzadeh, P., and Izadi, H. (2017). The Welfare Computation under Different Fiscal Policies in an Optimal Monetary and Fiscal Policy Model Framework. Quarterly Journal of Economical Modelling, 10(36): 25-51. [in Persian]
Ravn, M., Schmitt-Grohe, S., and Uribe, M. (2006). Deep habit. Review of Economic Studies 73 (1), 195–218.
Ravn, M., Schmitt-Grohe, S., and Uribe, M. (2010). Deep habits and the dynamic effects of monetary policy shocks. Journal of The Japanese and International Economies 24, 236–258.
Ravn, M., Schmitt-Grohé, S., and Uribe, M. (2012). Consumption, government spending, and the real exchange rate. Journal of Monetary Economics 59, 215–234.
Rotemberg, J.J. (1982). Sticky prices in the United States. Journal of Political Economy. University of Chicago Press, 90(6), 1187–1211.
Sayadi, M., shakeri, A., Mohammadi, T., and Bahrami, J. (2016). Stochastic shocks and management of oil revenues in Iran. Quarterly Journal of Economic Research, 16(61), 33-80. 10.22054/JOER.2016.5289. [in Persian]
Smets, F.,  and Wouters, R. (2007). Shocks and frictions in US business cycles: A Bayesian DSGE approach. American Economic Review, 97(3), 586–606.
Tavakolian, H. (2012). A New Keynesian Phillips Curve in a DSGE Model for Iran. Journal of Economic Research, 47(3), 1-22. [in Persian]
Zubairy, S. (2010). Deep Habits, Nominal Rigidities and Interest Rate Rules. MPRA Paper 26053. University Library of Munich. Germany.