Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach
Iran's provinces have experienced high inflationary pressures over the past few decades. This paper models the dynamics of inflation in terms of spatial effects between Iranian provinces using the hybrid Phillips New Keynesian Curve during the period (1392-1380). The results show that, the Phil...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2018-12-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_10150_0da3592cc0b2d95ae786a30641bab9db.pdf |
| _version_ | 1797369335858069504 |
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| author | Zahra Kahrizi aziz maraseli heshmatollah asgari |
| author_facet | Zahra Kahrizi aziz maraseli heshmatollah asgari |
| author_sort | Zahra Kahrizi |
| collection | DOAJ |
| description | Iran's provinces have experienced high inflationary pressures over the past few decades. This paper models the dynamics of inflation in terms of spatial effects between Iranian provinces using the hybrid Phillips New Keynesian Curve during the period (1392-1380). The results show that, the Phillips Keynesian curve is suitable for investigating the dynamics of inflation in Iran's provinces. Findings indicate that provinces focus on setting prices of their goods based on a combination of forward looking and backward looking rules, and that forward looking behaviors will have a stronger effect on the rate of inflation in the current period. Also in each province ,the output gap as representative of the actual variables has an effect on the inflation rate of its current period. Finally, considering the significance of spatial auto-correlation between Iran's provinces, output gap, expected and lagged inflation rates in adjacent provinces have negative effects on the current inflation rate of the neighboring provinces. |
| first_indexed | 2024-03-08T17:45:17Z |
| format | Article |
| id | doaj.art-bffbd4c22bb24211a40ccfd40664d87b |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:45:17Z |
| publishDate | 2018-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-bffbd4c22bb24211a40ccfd40664d87b2024-01-02T10:29:31ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452018-12-01237713916710.22054/ijer.2018.1015010150Inflation Dynamics in Iran Provinces: A Spatial Econometric ApproachZahra Kahrizi0aziz maraseli1heshmatollah asgari2M.A. of Energy Economics, Ilam University, IlamEconomic Instructor and Faculty Member of Ilam University, Ilam, Iran.Associate Professor of Economics, Ilam University, Ilam, IranIran's provinces have experienced high inflationary pressures over the past few decades. This paper models the dynamics of inflation in terms of spatial effects between Iranian provinces using the hybrid Phillips New Keynesian Curve during the period (1392-1380). The results show that, the Phillips Keynesian curve is suitable for investigating the dynamics of inflation in Iran's provinces. Findings indicate that provinces focus on setting prices of their goods based on a combination of forward looking and backward looking rules, and that forward looking behaviors will have a stronger effect on the rate of inflation in the current period. Also in each province ,the output gap as representative of the actual variables has an effect on the inflation rate of its current period. Finally, considering the significance of spatial auto-correlation between Iran's provinces, output gap, expected and lagged inflation rates in adjacent provinces have negative effects on the current inflation rate of the neighboring provinces.https://ijer.atu.ac.ir/article_10150_0da3592cc0b2d95ae786a30641bab9db.pdfhybrid new keynsian phillips curveoutput gapgeneralized method of moments (gmm)spatial econometric |
| spellingShingle | Zahra Kahrizi aziz maraseli heshmatollah asgari Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach فصلنامه پژوهشهای اقتصادی ایران hybrid new keynsian phillips curve output gap generalized method of moments (gmm) spatial econometric |
| title | Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach |
| title_full | Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach |
| title_fullStr | Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach |
| title_full_unstemmed | Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach |
| title_short | Inflation Dynamics in Iran Provinces: A Spatial Econometric Approach |
| title_sort | inflation dynamics in iran provinces a spatial econometric approach |
| topic | hybrid new keynsian phillips curve output gap generalized method of moments (gmm) spatial econometric |
| url | https://ijer.atu.ac.ir/article_10150_0da3592cc0b2d95ae786a30641bab9db.pdf |
| work_keys_str_mv | AT zahrakahrizi inflationdynamicsiniranprovincesaspatialeconometricapproach AT azizmaraseli inflationdynamicsiniranprovincesaspatialeconometricapproach AT heshmatollahasgari inflationdynamicsiniranprovincesaspatialeconometricapproach |