Fatemeh Bazzazan; zahra seifi shahpar
Abstract
The aim of this paper is to evaluate the impact of financial flows on the real side of the economy. FSAM is one of the useful models used to assess those impacts. In this context, the main research question is how the extension of financial flows in the SAM framework, would affect production multipliers? ...
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The aim of this paper is to evaluate the impact of financial flows on the real side of the economy. FSAM is one of the useful models used to assess those impacts. In this context, the main research question is how the extension of financial flows in the SAM framework, would affect production multipliers? For this purpose, by using the Social Accounting Matrix for Iranian economy in year 1999, the resulting Financial Social Accounting Matrix is calculated at the national level, and the real SAM and FSAM multipliers are calculated and compared.
The results show that: 1) FSAM multipliers are greater than SAM multipliers for all accounts, that difference clearly describes the important role of the financial flows in the economy. 2) By increasing one extra unit in each one of the exogenous items, the financial intermediation sector generates the second maximum increase in the income for the factors of production and domestic institutions of the society after the agricultural sector which creates the largest increase in income in the economy. It is also creating the largest increase in the income of labors, that this can be one of the reasons of movement of the factors of production towards the financial intermediation and the growth of the financial sector in comparison to the real sector of the economy. 3) according to FSAM maltipliers results, it can be concluded that the financial system in Iran is a bank-oriented.
javad taherpoor; fatemeh rajabi
Volume 15, Issue 59 , January 2016, Pages 35-56
Abstract
During last two decades, studies in the area of political economy focused more on how the political structure of a country can influence economic outcomes. It is reasoned that the higher the degree of political competition, the more the likelihood of implementing mature policies and parliament can do ...
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During last two decades, studies in the area of political economy focused more on how the political structure of a country can influence economic outcomes. It is reasoned that the higher the degree of political competition, the more the likelihood of implementing mature policies and parliament can do better its role to control and monitor the government and this has a positive impact on economic growth. On the other hand, when the degree of political competition decreases, the parliament either aligns with the government or confronts it, which in both cases the probability of implementing efficient and pro-growth policies will decrease.
In this study, we examine the effect of political competition on economic growth. Accordingly, the alignment between the parliamentary and presidential political party was considered as a measure of the presence of the political parties and political competition and it is entered in an economic growth model alongside other variables. Estimation of the model during years 1988-2014 showed that alignment of legislative and executive branches has a negative relationship with economic growth or more clearly, the decline in political competition has had a negative effect on economic growth.
azam ahmadyan; mehran kyanvand
Volume 15, Issue 59 , January 2016, Pages 57-94
Abstract
Bank liquidity increases the ability of banks in case of suddenly decreasing deposits and for the purpose of credit financing. The central bank as a policy-maker institution can play an important role in preventing a liquidity crisis, when the banks' liquidity risks have increased. One of the most important ...
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Bank liquidity increases the ability of banks in case of suddenly decreasing deposits and for the purpose of credit financing. The central bank as a policy-maker institution can play an important role in preventing a liquidity crisis, when the banks' liquidity risks have increased. One of the most important tools for central bank is liquidity injection in the banking system in a liquidity crisis. Since effectiveness of liquidity injection in reducing the probability of liquidity risk depends on the health status of the banks, in this paper we study the effect of liquidity injection on reducing liquidity crisis with a consideration for soundness of banking activities, using a a panel-logit model and balance sheet and income statement data for the period of 2006-2013. Results show that liquidity injection reduces liquidity risk and if one bank is more stable than other banks, it will have lower liquidity risk than others.
Ali Asghar Banou'i; zahra zabihi; parisa mohajeri; elham tabrizi
Volume 15, Issue 59 , January 2016, Pages 95-124
Abstract
Errors which occur in the process of collecting and compiling databases and developing symmetric input-output tables are inevitable. The issue of stochastic data contained in the input-output tables has been one of the key issues discussed in input-output economic literature. Foreign researchers have ...
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Errors which occur in the process of collecting and compiling databases and developing symmetric input-output tables are inevitable. The issue of stochastic data contained in the input-output tables has been one of the key issues discussed in input-output economic literature. Foreign researchers have demonstrated in theoretical studies that if the matrix of technical coefficients is stochastic, the Leontief production multipliers will be positively biased. Although the findings of applied studies (that include the complier's and practitioner's approach) confirm the above observation, but they also show that this bias is trivial and therefore can be ignored. In this study, the approaches of practitioner and complier to the analysis and estimation of the bias of stochastic input-output multipliers and the estimation of multiplier bias are explained. For this purpose, we use Monte Carlo simulation method from the Complier’sview to estimatethe bias of production multipliers and the effect of sample size on the bias. The findings of this study suggest that, first, the greater the sample size the less the amount of bias of multipliers and second, the greater the sample size, the higher percentage of elements in matrix of production multipliers demonstrate a positive bias. Third, in a sample with large size, all multipliers have significant positive biases that is in line with the findings and results of analytical studies, however this bias is very small.
reza akhbary; hamid amadeh
Volume 15, Issue 59 , January 2016, Pages 125-160
Abstract
GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different ...
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GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different forms such as difference version, gap version and production function form. Because of much debate that is done in recent years regarding the labour market, in this study with the aim of presenting scientific analysis of current conditions in Iranian economy, we used pesaran et al (2001) approach to estimate long-run and short-run Okun coefficients in an ARDL model and the data is for the period of 1974-2011. We found that there is long run relationship between variables in three models that we used. The results show that to reduse the unemployment rate to less than %10, GDP growth rate must be over %10. These results points to deterioration of current economic conditions. At the end, Analysis of Granger causality showed that there are unidirectional causality relationships in all three forms of Okun’s law.
abolfazl ghiasvand; fatemeh abdolshah
Volume 15, Issue 59 , January 2016, Pages 161-187
Abstract
In this paper, resilience of an economic system is measured by an overall index, based on the Borman et al. index, for the period of 1996-2013. The results are then compared with Briguglio index. To measure the final index, the first step is to make variables have a similar direction. The second step ...
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In this paper, resilience of an economic system is measured by an overall index, based on the Borman et al. index, for the period of 1996-2013. The results are then compared with Briguglio index. To measure the final index, the first step is to make variables have a similar direction. The second step is normalization of variables that their values reside between zero and one. In the last step we calculate the weighted average of variables. The value of Resilience Index is between zero and one. The closer the index to zero, the less resilient will be the economic system. In versus, The closer the index to one, the more resilient the economy. The results show that resilience was low during whole the period under consideration. Resilience reached its peak in 2001, because the budget deficit and inflation rate were reduced and governance has been improved. Then the trend started to decline. The Resilience index reached its minimum level after year 2007. According to the indeces, the main reasons were governance and market efficiency indeces.
