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An Empirical Assessment of the Monetary Approach to Endogenous Technical Progress Theory: DSGE approach
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Saedeh Azizi sales *   , Amir mansour Tehranchian , Ahmad Jafari samimi , Hossein Tavakolian |
| University of Mazandaran , azizi.saede@gmail.com |
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Abstract: (2807 Views) |
Economis growth is one of the main factors for evaluating the performance of governments. Economic growth itself is influenced by other factors that have been addressed in growth theories. Among the factors examined in growth theories, technical progress is of particular importance due to its long-term effects on growth. In recent growth models, the technological progress considered an endogenous factor which is influenced by the other variables. The present study seeks to investigate the effect of monetary shocks on technical progress in Iran during 1996-2004, using the Dynamic Stochastic General Equilibrium Model.
The results of this study showed that the shock of increase in money base through increasing the amount of investment in knowledge would lead to an increase in technology growth. Considering the impact of monetary policy on technical progress in a recession-inflationary situation which there is a need of production increase, especially for a monetary authority to stimulate supply in the economy, is the policy recommendation of this paper. |
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| Keywords: technical progress, endogenous growth theory, monetary policy, Dynamic Stochastic General Equilibrium |
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Full-Text [PDF 1075 kb]
(826 Downloads)
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Type of Study: Research |
Subject:
Special
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