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Modeling the Oil-Revenue Shocks in Iran, in the Context of a Neoclassical Framework
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Hossein Kavand *   , Asghar Shahmoradi |
| , hossein.kavand@yahoo.com |
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Abstract: (15805 Views) |
| The oil-export revenues can impact the components of monetary aggregates through the Iranian government budget resulting in the loose of the Iranian central bank's control over the money and inflation. The empirical evidences show that the positive and the negative oil-export revenue shocks increase the inflation rate in Iran. This paper intends to build a Neoclassical Dynamic Stochastic Model to analyze the channels through which the oil-export revenues impact the Iranian economy and inflation rate on the basis of the assumption that the monetary, fiscal and development policy measures are highly inter-related. |
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| Keywords: Oil-Revenue Shocks, Stochastic Differential Equation, State-Space, Inflation |
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Full-Text [PDF 445 kb]
(1761 Downloads)
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Type of Study: Research |
Subject:
General
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