Neutrality of Money in Iran’s Service Sector
Service sector has been changed qualitatively and quantitatively in Iran over the time. Its share in sectoral value-added, GDP, employment and absorption of the resources has been increasing dramatically in recent years. In this paper, neutrality and super neutrality of money in service sector are t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2018-08-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-14794-en.pdf |
| _version_ | 1797803172489592832 |
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| author | Banafsheh Najafi Nader Hakimipour hojjat akbarian |
| author_facet | Banafsheh Najafi Nader Hakimipour hojjat akbarian |
| author_sort | Banafsheh Najafi |
| collection | DOAJ |
| description | Service sector has been changed qualitatively and quantitatively in Iran over the time. Its share in sectoral value-added, GDP, employment and absorption of the resources has been increasing dramatically in recent years. In this paper, neutrality and super neutrality of money in service sector are tested using data on services’ value added, the monetary base, liquidity and money supply by using Fisher-Seater methodology during 1973-2015. In order to determine the degree of the stationary, various unit root tests are used. Since ADF, KPSS and PP unit root tests do not consider the structural breaks; this paper applies Zivot and Andrews unit root test. The results show that, firstly, Zivot & Andrews method is relevant to test for unit root because of structural breaks in variables. Secondly, money in the services sector is not neutral; and permanent changes in monetary variables affect real production. This leads policymakers to make expansionary monetary policies and consider the relevant costs incurred by people. |
| first_indexed | 2024-03-13T05:17:52Z |
| format | Article |
| id | doaj.art-1b170cecce594fdf8e88a5ba3dca190d |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:17:52Z |
| publishDate | 2018-08-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-1b170cecce594fdf8e88a5ba3dca190d2023-06-15T20:23:11ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322018-08-011835778Neutrality of Money in Iran’s Service SectorBanafsheh Najafi0Nader Hakimipour1hojjat akbarian2 Payame Noor University, and Expert in Financial Accounts, Statistical Center of Iran Faculty Member of Statistical Research and Training Center Payame Noor University, and Expert of Statistical Center of Iran Service sector has been changed qualitatively and quantitatively in Iran over the time. Its share in sectoral value-added, GDP, employment and absorption of the resources has been increasing dramatically in recent years. In this paper, neutrality and super neutrality of money in service sector are tested using data on services’ value added, the monetary base, liquidity and money supply by using Fisher-Seater methodology during 1973-2015. In order to determine the degree of the stationary, various unit root tests are used. Since ADF, KPSS and PP unit root tests do not consider the structural breaks; this paper applies Zivot and Andrews unit root test. The results show that, firstly, Zivot & Andrews method is relevant to test for unit root because of structural breaks in variables. Secondly, money in the services sector is not neutral; and permanent changes in monetary variables affect real production. This leads policymakers to make expansionary monetary policies and consider the relevant costs incurred by people.http://ecor.modares.ac.ir/article-18-14794-en.pdfservice sectorgdpfisher-seater methodologylong-run neutralitysuper neutrality |
| spellingShingle | Banafsheh Najafi Nader Hakimipour hojjat akbarian Neutrality of Money in Iran’s Service Sector پژوهشهای اقتصادی service sector gdp fisher-seater methodology long-run neutrality super neutrality |
| title | Neutrality of Money in Iran’s Service Sector |
| title_full | Neutrality of Money in Iran’s Service Sector |
| title_fullStr | Neutrality of Money in Iran’s Service Sector |
| title_full_unstemmed | Neutrality of Money in Iran’s Service Sector |
| title_short | Neutrality of Money in Iran’s Service Sector |
| title_sort | neutrality of money in iran s service sector |
| topic | service sector gdp fisher-seater methodology long-run neutrality super neutrality |
| url | http://ecor.modares.ac.ir/article-18-14794-en.pdf |
| work_keys_str_mv | AT banafshehnajafi neutralityofmoneyiniransservicesector AT naderhakimipour neutralityofmoneyiniransservicesector AT hojjatakbarian neutralityofmoneyiniransservicesector |