Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach
Curbing inflation is one of the requirements of a good economic policy. The steady rise of inflation can exacerbate poverty and income inequality, and even increase crime. Therefore, various studies have identified inflation as a determinant in reducing economic welfare. Considering that the Iranian...
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| Format: | Article |
| Language: | fas |
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Institute for Management and Planning Studies
2023-05-01
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| Series: | برنامهریزی و بودجه |
| Subjects: | |
| Online Access: | http://jpbud.ir/article-1-2161-en.pdf |
| _version_ | 1797736550765690880 |
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| author | Mani Motameni Shahryar Zaroki Arman Yousefi Barfurushi |
| author_facet | Mani Motameni Shahryar Zaroki Arman Yousefi Barfurushi |
| author_sort | Mani Motameni |
| collection | DOAJ |
| description | Curbing inflation is one of the requirements of a good economic policy. The steady rise of inflation can exacerbate poverty and income inequality, and even increase crime. Therefore, various studies have identified inflation as a determinant in reducing economic welfare. Considering that the Iranian economy has experienced high inflation in recent decades, it seems that the welfare of the Iranian population responds quickly to this variable, and reducing the frequency of data may reduce pattern explanation. This study attempts to measure the effect of monthly inflation on economic well-being for the period 1982-2020. Since the index of economic well-being cannot be determined at a frequency higher than annual, it is necessary to employ a mixed-data sampling (MIDAS) approach. Economic growth has been also included in the model as a control variable. The estimation results indicate that inflation has a negative (unfavorable) effect, and economic growth has a positive (favorable) effect on economic well-being. Moreover, the effect of inflation is significantly larger than economic growth. In other words, controlling inflation may have a greater effect on the economic well-being of society in the long term than economic growth. |
| first_indexed | 2024-03-12T13:14:35Z |
| format | Article |
| id | doaj.art-752e308ca5c741a9a00e29226f86d961 |
| institution | Directory Open Access Journal |
| issn | 2251-9092 2251-9106 |
| language | fas |
| last_indexed | 2024-03-12T13:14:35Z |
| publishDate | 2023-05-01 |
| publisher | Institute for Management and Planning Studies |
| record_format | Article |
| series | برنامهریزی و بودجه |
| spelling | doaj.art-752e308ca5c741a9a00e29226f86d9612023-08-27T09:11:31ZfasInstitute for Management and Planning Studiesبرنامهریزی و بودجه2251-90922251-91062023-05-012813152Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) ApproachMani Motameni0Shahryar Zaroki1Arman Yousefi Barfurushi2 Department of Energy Economy, Faculty of Economics and Administration Sciences, University of Mazandaran, Iran. Department of Energy Economy, Faculty of Economics and Administration Sciences, University of Mazandaran, Iran. Department of Energy Economics, Faculty of Economics and Administration Sciences, University of Mazandaran, Iran Curbing inflation is one of the requirements of a good economic policy. The steady rise of inflation can exacerbate poverty and income inequality, and even increase crime. Therefore, various studies have identified inflation as a determinant in reducing economic welfare. Considering that the Iranian economy has experienced high inflation in recent decades, it seems that the welfare of the Iranian population responds quickly to this variable, and reducing the frequency of data may reduce pattern explanation. This study attempts to measure the effect of monthly inflation on economic well-being for the period 1982-2020. Since the index of economic well-being cannot be determined at a frequency higher than annual, it is necessary to employ a mixed-data sampling (MIDAS) approach. Economic growth has been also included in the model as a control variable. The estimation results indicate that inflation has a negative (unfavorable) effect, and economic growth has a positive (favorable) effect on economic well-being. Moreover, the effect of inflation is significantly larger than economic growth. In other words, controlling inflation may have a greater effect on the economic well-being of society in the long term than economic growth.http://jpbud.ir/article-1-2161-en.pdfinflationmixed dataeconomic growtheconomic well-beingiran. |
| spellingShingle | Mani Motameni Shahryar Zaroki Arman Yousefi Barfurushi Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach برنامهریزی و بودجه inflation mixed data economic growth economic well-being iran. |
| title | Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach |
| title_full | Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach |
| title_fullStr | Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach |
| title_full_unstemmed | Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach |
| title_short | Testing the Response of the Annual Well-Being Index to Monthly Inflation in Iran: An Application of a Mixed-Data Sampling (MIDAS) Approach |
| title_sort | testing the response of the annual well being index to monthly inflation in iran an application of a mixed data sampling midas approach |
| topic | inflation mixed data economic growth economic well-being iran. |
| url | http://jpbud.ir/article-1-2161-en.pdf |
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