The present article aimed to understand the effect of news shocks related to the technology on macroeconomic variables. In this regard, a dynamic stochastic general equilibrium model was used to analyze the reaction of macroeconomic variables in Iran based on seasonal d More
The present article aimed to understand the effect of news shocks related to the technology on macroeconomic variables. In this regard, a dynamic stochastic general equilibrium model was used to analyze the reaction of macroeconomic variables in Iran based on seasonal data during 2001-2021. The results indicate that the news shocks increases the productivity of all production factors within one standard deviation. This increase escalates the wage rate as well as the interest rate. Household consumption, production and investment also increase opposing this shock. Due to the increase in production, the working hours will increase and consequently the inflation will decrease. Moreover, the economic prosperity grows due to the increased consumption and production.
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Abstract
The purpose of this paper is to study the factors affecting Tradable and Non-tradable inflation. Accordingly, Dynamic stochastic General Equilibrium model was used during the period 1991 to 2016. The results of the Impulse Response Functions (IRF) indicate tha More
Abstract
The purpose of this paper is to study the factors affecting Tradable and Non-tradable inflation. Accordingly, Dynamic stochastic General Equilibrium model was used during the period 1991 to 2016. The results of the Impulse Response Functions (IRF) indicate that non-tradable inflation is more responsive as a result of shocks. Monetary shock has had the greatest impact on non-tradable inflation, while Exchange rate and monetary shock have the greatest impact on tradable inflation in terms of initial effect and durability respectively. Based on the results, policy makers' attention to the components of inflation is suggested when economic decisions are made.
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This paper examines an optimal fiscal policy model in the presence of agents heterogeneous in a dynamic stochastic general equilibrium framework. Therefore, the presence of heterogeneous agents in the model led More
Abstract
This paper examines an optimal fiscal policy model in the presence of agents heterogeneous in a dynamic stochastic general equilibrium framework. Therefore, the presence of heterogeneous agents in the model led to create limitation that will be call government preference. The role of these preferences and tendency of the Government to the poor or the rich group can change the results of optimal policies on the economy. By using a dynamic stochastic general model, the role of government preferences tendency was been surveyed. The results indicate that in these models, the role of government expenditure financing through available taxes in the policymaking system, is partly dependent on the government preferences tendency. On the bases of the results, it is suggested that separating the government preferences and tendency in relation to the poor and the rich.
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Financing to implement macroeconomic policies in the public and private sectors is one of the most important factors in achieving economic goals in any country. On the one hand, easy access and on the other hand, amount of financing costs of these funds via the financia More
Financing to implement macroeconomic policies in the public and private sectors is one of the most important factors in achieving economic goals in any country. On the one hand, easy access and on the other hand, amount of financing costs of these funds via the financial intermediaries whose role is to provide these resources, can lead to change in the dynamics of macroeconomic variables and Consider as an important factor in volatilities in business cycle. Given the importance of role of financing costs in economic modeling, this paper seeks to investigate the role of borrowing and financing costs in economic models by designing a dynamic stochastic general equilibrium model and Compare the impact of such costs on the behavior of macroeconomic variables. Comparison of the results of the impulse-response functions of the variables shows that the entering of financing costs into the model led to reduce of the impact of shocks on the variables. In fact, the existence of these costs can change household investment decisions and cause investment to be delayed until the financing costs of financial intermediates are at their lowest and the investment horizon changed.
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