خلاصة:
The purpose of this article is to analyze the macroeconomic impacts of fiscal policy in Iran using a new-Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. The model takes into account distortionary taxations on wage, dividend, and consumption, while government expenditures are broken down into consumption of goods and services, and investment. The model is calibrated for Iran based on the estimated parameters by Bayesian method. To do so, a data set from 1981 to 2016 is used. The impulse response functions illustrate that an increase in consumption tax rate has a larger impact on the contraction of the economy than wage tax rate whereas the expansionary effects of government investment is much larger than government consumption expenditures.
ملخص الجهاز:
"In particular, although most of the recent literature, based either on structural macro models (like Dynamic Stochastic General Equilibrium models) or on VAR analysis, shows positive short-term output multipliers stemming from public expenditure increases and tax cuts, the estimated magnitude and duration of these effects is very disperse (see de Castro and de Cos, 2008 and Henry et al.
The DSGE models developed in order to assess the dynamics impacts of shocks arising from the demand or supply side of the economy or fiscal and monetary policies (Bhattarai and Trzeciakiewicz, 2012).
(2009), who estimate the effects of fiscal policy in the Euro area; Iwata (2009), who models fiscal policy in Japanese economy in order to study how the fiscal authority’s financing behavior affects dynamic responses to a government spending shocks; Colciago et al.
Firms (View the image of this page) Regarding oil sector is an important part of the economy, it is assumed that the total product (/) is the sum of oil (/) and non-oil (/) products as follows / (8) Since oil products mostly depend on the oil reserves and don't change substantially due to the increase in labor and capital, this sector is modeled as an autoregressive exogenous stochastic process of the form1 / (9) where / is an i.
(2010) and Komijani and Tavakolian (2012), government is assumed to follow McCallum rule for monetary policy, so (View the image of this page) (41) where / is to capture the persistence of the money growth and / is a money supply shock."