Investigating the Ricardian equivalence in Iran's Economy with Optimizing Martins and Araujo Model
کد مقاله : 1070-FEMATH-FULL
علیرضا اکبری1، احمد مویدفرد2، سینا عنایت اللهی *3
1نایب رییس هیات مدیره بانک تجارت
2دانش آموخته
چکیده مقاله:
This paper investigates the Ricardian equivalence in Iran's economy. Ricardian Equivalance is a concept that argues about financing the debt government by bond and the impact of it on people's consumption.The presence of the equivalence indicates the government debt has the negative impact on the consumption and doesn't stimulate demand side of economy. So, it has important policy implications for policy-makers. Debt governmet has been a common feature of government behavior in Iran's economy. Martins and Araujo model which is a growth model is used to test Ricardian equivalence. First, this model was adapted for Iran and oil income was added to the model. Second, the model was solved and finally it was estimated with a regression model during 1994 to 2014. Independent variable and dependent variable were investment and bond respectively. Results showed that public debt has a negative relationship with investment and the presence of Ricardian equivalence was confirmed.
کلیدواژه ها:
Bond, Investment, Ricardian equivalence, Iran's Economy, Optimization.
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