The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy
In macroeconomics literature inspired by traditional economists, it is said that economic growth and more equal distribution in income, are two opposite targets since moving toward more equality of income, will reduce propensity to saving. Based on the optimum growths models, it seems that the highe...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Tarbiat Modares University
2011-05-01
|
| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-405-en.pdf |
| _version_ | 1797803210203725824 |
|---|---|
| author | Rasul Bakhshi Dastjerdi |
| author_facet | Rasul Bakhshi Dastjerdi |
| author_sort | Rasul Bakhshi Dastjerdi |
| collection | DOAJ |
| description | In macroeconomics literature inspired by traditional economists, it is said that economic growth and more equal distribution in income, are two opposite targets since moving toward more equality of income, will reduce propensity to saving. Based on the optimum growths models, it seems that the highest levels of growth can happen in a system just when in allocating the resources among the generations the attention is more paid to the concept of justice. If in this process the attention is more paid to the present generation compared to the future ones, the available resources for the whole system will decrease and as a result the economic growth will be stabilized at far lower rates. The more economic justice means the higher rate for economic growth. In this paper we use an optimal growth theory for studying the mechanics of this regularity. Empirical calibration of the model to the Iranian economy reveals that if economic policy makers in a planning period via a scenario can decrease social time preference to a 5%, real per capita GDP, consumption, saving and per capita capital formation will increase by 6.5%, 2.2% and 42% respectively. |
| first_indexed | 2024-03-13T05:17:27Z |
| format | Article |
| id | doaj.art-aa0a69e78e3944ce8d5e95c0304f6742 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:17:27Z |
| publishDate | 2011-05-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-aa0a69e78e3944ce8d5e95c0304f67422023-06-15T20:33:20ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322011-05-011111941The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian EconomyRasul Bakhshi Dastjerdi0 Assistant Professor of Economics, Yazd University In macroeconomics literature inspired by traditional economists, it is said that economic growth and more equal distribution in income, are two opposite targets since moving toward more equality of income, will reduce propensity to saving. Based on the optimum growths models, it seems that the highest levels of growth can happen in a system just when in allocating the resources among the generations the attention is more paid to the concept of justice. If in this process the attention is more paid to the present generation compared to the future ones, the available resources for the whole system will decrease and as a result the economic growth will be stabilized at far lower rates. The more economic justice means the higher rate for economic growth. In this paper we use an optimal growth theory for studying the mechanics of this regularity. Empirical calibration of the model to the Iranian economy reveals that if economic policy makers in a planning period via a scenario can decrease social time preference to a 5%, real per capita GDP, consumption, saving and per capita capital formation will increase by 6.5%, 2.2% and 42% respectively.http://ecor.modares.ac.ir/article-18-405-en.pdfeconomic growthd63discountingintertemporal justicetime preferencedynamic optimization jel classification: c61o47 |
| spellingShingle | Rasul Bakhshi Dastjerdi The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy پژوهشهای اقتصادی economic growth d63 discounting intertemporal justice time preference dynamic optimization jel classification: c61 o47 |
| title | The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy |
| title_full | The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy |
| title_fullStr | The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy |
| title_full_unstemmed | The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy |
| title_short | The Impact of Intertemporal Justice on Economic Growth with Emphasis on Time Preference in the Iranian Economy |
| title_sort | impact of intertemporal justice on economic growth with emphasis on time preference in the iranian economy |
| topic | economic growth d63 discounting intertemporal justice time preference dynamic optimization jel classification: c61 o47 |
| url | http://ecor.modares.ac.ir/article-18-405-en.pdf |
| work_keys_str_mv | AT rasulbakhshidastjerdi theimpactofintertemporaljusticeoneconomicgrowthwithemphasisontimepreferenceintheiranianeconomy AT rasulbakhshidastjerdi impactofintertemporaljusticeoneconomicgrowthwithemphasisontimepreferenceintheiranianeconomy |