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:: Volume 19, Issue 60 (Winter 2012) ::
qjerp 2012, 19(60): 139-160 Back to browse issues page
The Effect of the Government Subsidies Shocks on Real Consumption of Private Sector in Iran
Mohammad Rezaeipoor * , Majid Aghaei
, m_rezaeepoor59@yahoo.com
Abstract:   (15331 Views)
In this paper, we have studied the effects of financial shocks arising from increased government subsidies on real consumption of private sector in Iran, by using Auto - Regressive Distributed Lag (ARDL). Results of the estimated models show that long-term and short-term relationships can be seen between real consumption of private sector and subsidy shocks. According to the research results, under the stag- flation situation which is currently prevailed in Iran’s economy, creating a negative subsidy shock certainly reduces real private sector consumption in the short run. But, given the relatively high adjustment speed obtained from the model, there is a hope that the situation gets resolved in the medium term. Also the effects of these shocks on real private consumption will come close to the status of balance in the long-term.
Keywords: Real Private Consumption, Subsidies Shocks, Recession and Economic Boom
Full-Text [PDF 467 kb]   (4978 Downloads)    
Type of Study: Research | Subject: General
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Rezaeipoor M, Aghaei M. The Effect of the Government Subsidies Shocks on Real Consumption of Private Sector in Iran. qjerp 2012; 19 (60) :139-160
URL: http://qjerp.ir/article-1-190-en.html


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Volume 19, Issue 60 (Winter 2012) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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