Mahmoud Motevaseli; Zeynab Aeeni; Jila Torabi
Abstract
Today entrepreneurship has become one of the most important factors affecting economic development in many countries. However, it is very important to direct entrepreneurial actions toward productive activities. Baumol's theory of productive versus unproductive entrepreneurship highlights the role of ...
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Today entrepreneurship has become one of the most important factors affecting economic development in many countries. However, it is very important to direct entrepreneurial actions toward productive activities. Baumol's theory of productive versus unproductive entrepreneurship highlights the role of institutional environment in directing entrepreneurial actions toward either productive, unproductive, or even destructive outcomes. So, to establish institutions that support productive entrepreneurship, it is necessary to find the means which have an impact on institutional and regulatory environment. Although many studies have been conducted based on Baumol's theory so far, only a small number of researches proposed solutions for establishment of legal and regulatory institutions required for the development of productive entrepreneurship. Hence, this study is aimed at proposing a synthesized theory derived from Baumol's theory of entrepreneurship and the theory of collective action. Our synthesized theory can be utilized as a rule-making approach to address this challenge. This synthesized theory highlights the role of both the government’s and entrepreneurs’ collective action in formation of regulatory and legal institutions which in turn can influence productive entrepreneurship. The proposed theory suggests that the order which is created upon the collective action can play an effective role in emergence and expansion of productive economic development.
Mohammad Sayadi; Abbas Shakeri; Teymur Mohammadi; Javid Bahrami
Abstract
The main objective of this study is to evaluate the impact of oil revenue, productivity and money growth rate shocks on macroeconomic variables, in the context of a DSGE model with the consideration of features such as big size of government activities in the economy, inefficiency of government investment, ...
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The main objective of this study is to evaluate the impact of oil revenue, productivity and money growth rate shocks on macroeconomic variables, in the context of a DSGE model with the consideration of features such as big size of government activities in the economy, inefficiency of government investment, the need to invest in development of infrastructures, and existence of “National Development Fund” (NDF) to support private sector investment. The research findings based on RBC model, show that oil revenue shock has increased the consumption, government spending (both current and capital expenditures) and has decreased inflation in short-run; although because the oil shock is transferred to demand side, this situation leads to increase of inflation in medium-term. Our results show that when the oil revenue increases, the resources of NDF and consequently the share of credit granted to private sector will be raised and this can promote private sector production. In addition, because of the structure of Iranian economy, the increase in oil revenue has little effect on growth and development of production in non-oil producing sectors. Furthermore, the research findings show that when the inefficiency of public investments decreases, the investment of oil revenues has more positive effects on private sector production as a crowding-in effect phenomenon. Likewise, each of productivity and monetary shocks in the model has the same results as the theoretical expectations.
Hossein Tavakolian; Vajihe Afzali Abarquyi
Abstract
Selection of exchange rate regime and its consequences, is one of the major issues in international finance. Dependence of Iran to oil export revenues gives an important role to exchange rate policy in the economy. Using a dynamic stochastic general equilibrium open economy model for Iran, macroeconomic ...
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Selection of exchange rate regime and its consequences, is one of the major issues in international finance. Dependence of Iran to oil export revenues gives an important role to exchange rate policy in the economy. Using a dynamic stochastic general equilibrium open economy model for Iran, macroeconomic performance of the economy in three exchange rate regimes of floating, managed floating and fixed exchange rate regimes are compared. The model includes households, firms, government, monetary authority and foreign trade sector and the model also consists of Calvo price rigidity in production sector. The model is estimated by optimization of activities in different sectors, linearization of resultant equations and Bayesian estimation of parameters using macroeconomic data of Iran. The results show that inflation fluctuations response to oil and technology shocks are more volatile than other shocks. In the fixed exchange rate regime inflation variation is the lowest and output variation is the highest.
Aliasghar Esmaeilnia; Shahram i Vasfi Asfestan
Abstract
Due to different approaches to study security, there are several different indicators and policy recommendations for each of these approaches and they have different economic effects on societies. In this study the economic effects of traditional and new security approaches are studied by using different ...
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Due to different approaches to study security, there are several different indicators and policy recommendations for each of these approaches and they have different economic effects on societies. In this study the economic effects of traditional and new security approaches are studied by using different indicators, including indicators of the fragility of governments, perceived corruption, peace and military expenditure, for 135 countries in the period 2004 to 2014 and 2008 to 2014 by applying panel data method. The results show that factors of government fragility and military expenditure has negative impact on economic growth. The wider the extent of governments fragility, the less economic growth will be seen in those countries. The Relationship between "Corruption Perception Index" and economic growth shows that economic growth is high in the countries with less corruption in government sector. The study of the relationship between "Global Peace Index" and "government fragility index" with the investment in the countries show that global peace index has a positive impact and government fragility index has a negative impact on investment. In general, we can say the indices based on traditional approaches of security don’t have a positive impact on economic growth and, on the opposite side, the indices based on new approaches toward security have positive relation with economic factors, because they are structure-oriented and consider a wide range of factors leading to insecurity.
Abolfazl Shahabadi; Behzad Amiri; Sara Sarigol
Abstract
In recent decades, reducing income inequality has become one of the major objectives of economic and social development and even important part of governments’ tasks. Thus, studying equal distribution of income and trying to find its causes are important to achieve sustained and stable economic ...
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In recent decades, reducing income inequality has become one of the major objectives of economic and social development and even important part of governments’ tasks. Thus, studying equal distribution of income and trying to find its causes are important to achieve sustained and stable economic growth and development. Consequently, this study is using conventional econometrics technique (panel data approach) to evaluate the effect of governance on income equality in selected NAM countries during the period 1996-2012. The results show that governance variable has positive and significant effect on income equality in countries under study. Based on the estimation results, the effect of financial development, human capital, subsidies granted by the government on equal income distribution are positive and significant. The effect of synthesized variable of difference between labor compensation growth rate and inflation on income equality is positive but insignificant. Interaction effect of natural resources and governance variables on income equality is positive and significant.
Abd-ol-Rasul Ghasemi; Elham Shadabfar
Abstract
With respect to the fact that housing satisfies a social need, in addition to the impact of economic factors, the social factors are alsoimportant in housing market. The broad economic and social developments in previous years require a study on their impacts on home ownership, so recognizing important ...
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With respect to the fact that housing satisfies a social need, in addition to the impact of economic factors, the social factors are alsoimportant in housing market. The broad economic and social developments in previous years require a study on their impacts on home ownership, so recognizing important factors is a good guide for planners and policy makers. Since people with higher education need to spend some money on their education and this education status increases the expectation of people with higher degrees with respect to their salaries and employment opportunities, therefore studying the impact of education level on the probability of home ownership and evaluating its trend in different time horizons has a critical importance. Since about twenty percent of higher education graduates of Iran do reside in Tehran province, this effect for Tehran province is stronger and of higher importance. In this study with emphasis on recognizing the effect of factors identified in theoretical basis, we have used logit and probit models to investigate the importance of some factors affecting the status of home ownership with emphasis on education level of head of households during the years 1997, 2002 and 2007. The results show that the socio-economic characteristics of households have a significant effect on housing ownership and the relationship between education level of head of household and home ownership is negative. Also the probability of home ownership in families with higher education decrease in the years under study.
Mohammadgholi Yousefi; Bahman Khadem
Abstract
The purpose of this paper is to estimate disguised unemployment in Iran manufacturing industries. For this purpose, we have used a dynamic employment model. The labor requirement frontier was approximated by applying Frontier Analysis method and translog cost function. The model is applied to a panel ...
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The purpose of this paper is to estimate disguised unemployment in Iran manufacturing industries. For this purpose, we have used a dynamic employment model. The labor requirement frontier was approximated by applying Frontier Analysis method and translog cost function. The model is applied to a panel of nine groups of Iranian manufacturing industries based on two-digit ISIC classification for the period 1995-2012. We define disguised unemployment as the difference between optimal employment and actual employment. To find optimal employment we have used employment frontier function and we have defined optimal employment as the minimum labor requirement for a specified level of output. Our findings show that on average, disguised unemployment was more than 47 percent of total employments in manufacturing industries. However, this proportion was higher in group of “miscellaneous industries” (75 percent), followed by “nonmetallic minerals” (74/8 percent), but it was much lower in “textiles, apparel and leather industries” (2 percent) and “woods and furniture industries” (6 percent). In industries as important as “machinery” and “transport equipment”, disguised unemployment was around 58 percent. These findings seem reasonable, stemming probably from under-utilization of capacity in manufacturing industries.
