Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits
This paper addresses two questions. Does inflation in Iran stem from fiscal policy? Does inflationary impact depend upon the sources of budget deficit financing? Although the above questions have already been studied, there is no consensus on the findings, since the results are sensitive to the meth...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2010-05-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-1271-en.pdf |
| _version_ | 1797803213499400192 |
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| author | Ebrahim Hosseini Nasab Mahdieh Rezagholizadeh |
| author_facet | Ebrahim Hosseini Nasab Mahdieh Rezagholizadeh |
| author_sort | Ebrahim Hosseini Nasab |
| collection | DOAJ |
| description | This paper addresses two questions. Does inflation in Iran stem from fiscal policy? Does inflationary impact depend upon the sources of budget deficit financing? Although the above questions have already been studied, there is no consensus on the findings, since the results are sensitive to the methodologies and the time period covered by the data.
This paper employs vector autoregressions, impulse response functions, variance decomposition and cointegration techniques to estimate the short and long term relationship between inflation and a number of fiscal indicators in Iran. The annual data are used over the period 1973 to 2006. Particular emphasis is placed on the government budget deficit predominantly financed by government borrowing. The results indicate that inflation is mostly induced by import prices, oil revenue and government budget deficit. |
| first_indexed | 2024-03-13T05:17:29Z |
| format | Article |
| id | doaj.art-b7d83f887c91461b81b21ddd558ec6a2 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:17:29Z |
| publishDate | 2010-05-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-b7d83f887c91461b81b21ddd558ec6a22023-06-15T20:32:51ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322010-05-0110100Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget DeficitsEbrahim Hosseini Nasab0Mahdieh Rezagholizadeh1 Tarbiat Modares University, management and Economics Faculty Tarbiat Modares University, Management and Economics Faculty This paper addresses two questions. Does inflation in Iran stem from fiscal policy? Does inflationary impact depend upon the sources of budget deficit financing? Although the above questions have already been studied, there is no consensus on the findings, since the results are sensitive to the methodologies and the time period covered by the data. This paper employs vector autoregressions, impulse response functions, variance decomposition and cointegration techniques to estimate the short and long term relationship between inflation and a number of fiscal indicators in Iran. The annual data are used over the period 1973 to 2006. Particular emphasis is placed on the government budget deficit predominantly financed by government borrowing. The results indicate that inflation is mostly induced by import prices, oil revenue and government budget deficit.http://ecor.modares.ac.ir/article-18-1271-en.pdfc22inflationbudget deficientvector autoregressionimpulse response functionsvariance decomposition jel classification: e31 |
| spellingShingle | Ebrahim Hosseini Nasab Mahdieh Rezagholizadeh Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits پژوهشهای اقتصادی c22 inflation budget deficient vector autoregression impulse response functions variance decomposition jel classification: e31 |
| title | Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits |
| title_full | Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits |
| title_fullStr | Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits |
| title_full_unstemmed | Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits |
| title_short | Analysis of the Fiscal Sources of Inflation in Iran Giving Special Emphasis to Budget Deficits |
| title_sort | analysis of the fiscal sources of inflation in iran giving special emphasis to budget deficits |
| topic | c22 inflation budget deficient vector autoregression impulse response functions variance decomposition jel classification: e31 |
| url | http://ecor.modares.ac.ir/article-18-1271-en.pdf |
| work_keys_str_mv | AT ebrahimhosseininasab analysisofthefiscalsourcesofinflationinirangivingspecialemphasistobudgetdeficits AT mahdiehrezagholizadeh analysisofthefiscalsourcesofinflationinirangivingspecialemphasistobudgetdeficits |