Estimating Consumption Function of Private Sector in Iran Economy(1338-1385)

Subject Areas : مدیریت

yadollah  rajaei ¹ (دانشکده مدیریت، دانشگاه آزاد اسلامی ابهر، ایران)
shahla  ahmadi ² (دانشکده مدیریت، دانشگاه آزاد اسلامی میانه، ایران)

Received: 2011-04-07 Accepted : 2011-12-09 Published : 2012-08-22

Keywords: economic, consumption, planning, challenging theories, propensity,

Abstract :

Different economic theories in various fields, one of the topics is which  of interest to economists in the field of consumption is  planning different and challenging theories in economics which brings this guestion to mind that in the explaining behaviour of introducing society , forecasting and plannings , which of the incentives of consumption functions of Keynes , Fridman , Dosenbry , Madigliani ,…is criteria. Selecting each of these Cases , normally have different out comes and in this study , our goal is estimation and analysis of consumption function of private sector , using convergence and Yu Hansen and Jusilyus system during 1338 – 1385 for Iran economy. Experimental results of econometrics show that during  study period , the consumption in  each period has direct relations hip with real income and real in come of the previous period and inflation of future period has negative effect on the consumption of current period and the consumption has in direct relationship with interest rate , In other words , the increase of interest rate causes decrease of consumption and in crease of saving  by the way , the consumption of each period decreases with increase of general price level of that period , an during  study period , marginal propensity to long-term consumption , is 14% , and is adjusted on the basis of income and consumption data of previous period , and in Iran , in is appriopriately the explicator of consumption behavior , and thus , in economic policy makings , planning and authoring consumption function is advised in this manner.