We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
The Policy of Increasing Public Investment in Iran: A DSGE Approach.
- Authors
Torkamani, Esmael; Fotros, Mohammad Hassan
- Abstract
The use of natural resource revenues for achievement of development has been challenging issue for resource abound countries. These challenges stem from the fact that incomes from natural resources are non-durable, unpredictable and uncertain. Many countries have pursued approaches and tools for managing these revenues to prevent economic fluctuations. The international organizations and economic experts propose a diversification into resource revenues in the form of different approaches for public investment. The present study evaluates the policy of increasing public investment in Iran in the form of three gradual, aggressive and conservative approaches for the period of 1987-2015 using a dynamic stochastic general equilibrium method. The results showed that after an oil revenue shock, the status of economic variables in the gradual increase approach is better than the other two approaches. In a gradual approach, in addition to increasing GDP and private and public consumption, public debt is also declining.
- Subjects
IRAN; PUBLIC investments; BUSINESS cycles; GOVERNMENT policy; PUBLIC debts; NATURAL resources
- Publication
Quarterly Journal of Economic Growth & Development Research, 2019, Vol 9, Issue 36, p57
- ISSN
2228-5954
- Publication type
Article