This paper studies the relation between inflation rates and its uncertainty by using Markov-Switching regression model and monthly data of consumer price index during 1990:01-2012:09 in Iran. Inflation uncertainty is estimated by using Generalized Autoregressive Conditi More
This paper studies the relation between inflation rates and its uncertainty by using Markov-Switching regression model and monthly data of consumer price index during 1990:01-2012:09 in Iran. Inflation uncertainty is estimated by using Generalized Autoregressive Conditional Heteroskedastisity (GARCH) model. The empirical results of Markov Switching Auto Regressive (MSAR) model represent the presence of two clearly differentiated regimes over the entire Sample. The first regime corresponds to a high level inflation rate, low volatility, and the second regime corresponds to low level inflation, high volatility. The use of Markov-Switching Regression Model indicates that the increase of inflation rate will be associated to higher uncertainty according to both regimes.
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Abstract
In past decade, paying attention to the environment sustainability has been an important macroeconomic goal in different countries by moving towards a low-carbon economic growth. Therefore, this paper attempts to design and calibrate an endogenous growth model More
Abstract
In past decade, paying attention to the environment sustainability has been an important macroeconomic goal in different countries by moving towards a low-carbon economic growth. Therefore, this paper attempts to design and calibrate an endogenous growth model and use comparative static analysis to study the policies such as promoting green R&D, imposing an eco-tax, subsidizing less polluting factors of input for pollution abatement and then, to control the pollution effects on Iran economy. The results represent that the government can adjust the behavior of agents in order to reach a sustainable economic growth with the help of appropriate policies, and so to choose an optimal decision in the allocation of resources.
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