Asymmetrical Oil Price Shocks Effects on the Private Consumption and Government expenditure in Iran
Subject Areas : Financial EconomicsAbolfazl Ghiasvand 1 , Masoud Yahoo 2
1 - Assistant Professor, Islamic Azad University, Central Tehran Branch
2 - M.A in Energy Economics
Keywords: Oil Price, Oil Revenue, Private Consumption, Government Consumption, Asymmetrical Effects,
Abstract :
This paper aims to investigate whether an asymmetrical relationship between oil price oscillations and government and private consumption has existed in the past in case of Iranian economy. The data used for this purpose covers the time span of 0231-0231 corresponding to 0790-1110. Towards this end three analytical techniques have been use to investigate this hypothesis. Ordinary Least Squares (OLS) was used to estimates the parameters coefficients. The result has indicated that coefficients of parameters pertaining to government consumption model have higher value than that of private consumption model, indicating that government consumption is far strongly affected by changes in oil prices. It has been further identified that the establishment of Oil Stabilization Fund in year 1111, did not have any significant bearing on the government and private consumption in the wake of changes in oil prices.