The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE)
This paper aims to examine the replacement oil revenues with tax revenues in the Iranian economy. For this purpose, using dynamic stochastic general equilibrium (DSGE) approach, a small open economy model consisting of two tradable and non-tradable production sectors is designed. In government reven...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2018-03-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-27-en.pdf |
| _version_ | 1797803256690245632 |
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| author | parviz rostamzadeh Yazdan Goudarzi Farahani |
| author_facet | parviz rostamzadeh Yazdan Goudarzi Farahani |
| author_sort | parviz rostamzadeh |
| collection | DOAJ |
| description | This paper aims to examine the replacement oil revenues with tax revenues in the Iranian economy. For this purpose, using dynamic stochastic general equilibrium (DSGE) approach, a small open economy model consisting of two tradable and non-tradable production sectors is designed. In government revenue side, various taxes such as consumption tax, and income tax arising from the supply of labor and capital rent are included in the model. Model parameters were estimated by Bayesian approach using quarterly data for the period 1988-2014. Two scenarios were designed in order to replace oil revenues with tax revenues. In the first scenario, the government only receives oil incomes, and oil price is determined exogenously. In the second one, oil earnings are totally saved in the National Development Fund (NDF), and government spends only tax revenues to meet current and capital expenditure. The results indicate negative impact of higher taxes on macroeconomic variables such as economic growth and private consumption in the short-term and positive impact on GDP, consumption and investment in the long- term. |
| first_indexed | 2024-03-13T05:18:06Z |
| format | Article |
| id | doaj.art-55fe6725c9354debb369872ce13a8c22 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:06Z |
| publishDate | 2018-03-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-55fe6725c9354debb369872ce13a8c222023-06-15T20:22:43ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322018-03-01174121145The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE)parviz rostamzadeh0Yazdan Goudarzi Farahani1 Ph.D. in Economics, Faculty Member of Economics Department, Shiraz University Ph.D. Candidate in Economics, University of Tehran This paper aims to examine the replacement oil revenues with tax revenues in the Iranian economy. For this purpose, using dynamic stochastic general equilibrium (DSGE) approach, a small open economy model consisting of two tradable and non-tradable production sectors is designed. In government revenue side, various taxes such as consumption tax, and income tax arising from the supply of labor and capital rent are included in the model. Model parameters were estimated by Bayesian approach using quarterly data for the period 1988-2014. Two scenarios were designed in order to replace oil revenues with tax revenues. In the first scenario, the government only receives oil incomes, and oil price is determined exogenously. In the second one, oil earnings are totally saved in the National Development Fund (NDF), and government spends only tax revenues to meet current and capital expenditure. The results indicate negative impact of higher taxes on macroeconomic variables such as economic growth and private consumption in the short-term and positive impact on GDP, consumption and investment in the long- term.http://ecor.modares.ac.ir/article-18-27-en.pdftaxesoil revenuenational development funddynamic stochastic general equilibrium |
| spellingShingle | parviz rostamzadeh Yazdan Goudarzi Farahani The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) پژوهشهای اقتصادی taxes oil revenue national development fund dynamic stochastic general equilibrium |
| title | The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) |
| title_full | The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) |
| title_fullStr | The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) |
| title_full_unstemmed | The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) |
| title_short | The Substitution of Taxes for Oil Revenues by Designing a Dynamic Stochastic General Equilibrium (DSGE) |
| title_sort | substitution of taxes for oil revenues by designing a dynamic stochastic general equilibrium dsge |
| topic | taxes oil revenue national development fund dynamic stochastic general equilibrium |
| url | http://ecor.modares.ac.ir/article-18-27-en.pdf |
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