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Investigating the Impact of the Increase in Government Expenditures on Macro Variables in the Agricultural Sector and on Iranian Economy: An Analysis Based on General Equilibrium Framework
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Farzaneh Taheri *   , Hamid Mohammadi , Seyed Nematollah Mousavi |
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Abstract: (15137 Views) |
| This study is an attempt to apply a static Computable General Equilibrium model based on Iranian Social Accounting Matrix of 1380 in order to investigate the impact of 20 percent increase in Government expenditures under floating and fixed exchange rate regimes, on macro variables in the agricultural sector and Iranian economy as a whole. The parameters of the model are obtained using Calibration method. The model contained two sectors including the agriculture and non-agriculture. The results show that the increased Government expenditures would influence variables of agricultural sector and the macro Iranian economy undesirably, and this would be more serious under the fixed exchange rate regime as compared to the floating regime. It was also revealed that the increment in Government expenditures affects agricultural and rural sectors more in an unpleasant manner than the non-agricultural and urban sectors. |
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| Keywords: Government Expenditures, Macro Variables, Computable General Equilibrium |
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Full-Text [PDF 309 kb]
(4911 Downloads)
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Type of Study: Research |
Subject:
General
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