The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging

This paper has tried to apply BMA approach in order to investigate important influential variables on Gini coefficient in Iran over the period 1976-2010. The results indicate that the GDP growth is the most important variable affecting the Gini coefficient and has a positive influence on it. Also th...

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Main Authors: Mohsen Mehrara, Mojtaba Mohammadian
Format: Article
Language:English
Published: Faculty of Economic Sciences, Hyperion University, Bucharest, Romania 2015-03-01
Series:Hyperion Economic Journal
Subjects:
Online Access:http://hej.hyperion.ro/articles/1(3)_2015/HEJ%20nr1(3)_2015_A1Rezaei.pdf
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author Mohsen Mehrara
Mojtaba Mohammadian
author_facet Mohsen Mehrara
Mojtaba Mohammadian
author_sort Mohsen Mehrara
collection DOAJ
description This paper has tried to apply BMA approach in order to investigate important influential variables on Gini coefficient in Iran over the period 1976-2010. The results indicate that the GDP growth is the most important variable affecting the Gini coefficient and has a positive influence on it. Also the second and third effective variables on Gini coefficient are respectively the ratio of government current expenditure to GDP and the ratio of oil revenue to GDP which lead to an increase in inequality. This result is corresponding with rentier state theory in Iran economy. Injection of massive oil revenue to Iran's economy and its high share of the state budget leads to inefficient government spending and an increase in rent-seeking activities in the country. Economic growth is possibly a result of oil revenue in Iran economy which has caused inequality in distribution of income.
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spelling doaj.art-20c073de64b047f38c2b69a33210f8682022-12-21T19:26:04ZengFaculty of Economic Sciences, Hyperion University, Bucharest, RomaniaHyperion Economic Journal2343-79952343-79952015-03-01312028The Determinants of Gini Coefficient in Iran Based on Bayesian Model AveragingMohsen Mehrara0Mojtaba Mohammadian1University of Tehran, Tehran, IranUniversity of Tehran, Tehran, IranThis paper has tried to apply BMA approach in order to investigate important influential variables on Gini coefficient in Iran over the period 1976-2010. The results indicate that the GDP growth is the most important variable affecting the Gini coefficient and has a positive influence on it. Also the second and third effective variables on Gini coefficient are respectively the ratio of government current expenditure to GDP and the ratio of oil revenue to GDP which lead to an increase in inequality. This result is corresponding with rentier state theory in Iran economy. Injection of massive oil revenue to Iran's economy and its high share of the state budget leads to inefficient government spending and an increase in rent-seeking activities in the country. Economic growth is possibly a result of oil revenue in Iran economy which has caused inequality in distribution of income.http://hej.hyperion.ro/articles/1(3)_2015/HEJ%20nr1(3)_2015_A1Rezaei.pdfGini coefficientBayesian Model Averaging (BMA)
spellingShingle Mohsen Mehrara
Mojtaba Mohammadian
The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
Hyperion Economic Journal
Gini coefficient
Bayesian Model Averaging (BMA)
title The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
title_full The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
title_fullStr The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
title_full_unstemmed The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
title_short The Determinants of Gini Coefficient in Iran Based on Bayesian Model Averaging
title_sort determinants of gini coefficient in iran based on bayesian model averaging
topic Gini coefficient
Bayesian Model Averaging (BMA)
url http://hej.hyperion.ro/articles/1(3)_2015/HEJ%20nr1(3)_2015_A1Rezaei.pdf
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