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The objective of this study is to analyze the impact of rising commodity prices (bread, milk, water, electricity, and gas) on the welfare of urban household income. For this purpose, the compensating variation formulation is extracted in Almost Ideal Demand System (AIDS) framework. Moreover, the demand system is calculated based on AIDS parameters and applying SUR method. It is computed for three main income categories with using, income and budget data during the period 2010- 2013. The results suggest that compensating variation is positive for urban households, which means that the rising prices reduce urban household welfare in this period.  The results also show that percentage of reduction in welfare due to rising commodity prices on lower-income groups is more than middle and higher-income groups.

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Banking sector as one of the most important sectors in Iran’s economy plays a major role in general equilibrium and transmission of various shocks in the society. In this paper, to address the role of the banking system in the transmission of shocks, we design a DSGE Model with introducing interbank market and considering endogeneity of the default probability in banking sector and firms. Analyzing the effects of productivity and stock market shocks on real variables indicates that the adopted model is well-matched with theoretical expectations and Iran’s economic facts. The results of the model support the importance of the banking sector in the transmission of shocks and also confirm that central bank plays a critical role to mitigate the effects of the shock through injecting liquidity into the interbank market.

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This study discussed the role of oil revenues and banking sector credits with an emphasis on monetary policy in Iran's economy in the form of a dynamic dynamic equilibrium model. In this study was used real seasonal per capita data for the period of 1996 to 2017 and the seasonal adjustment utilized by the Hadrik-Proskat filter and Calibration method to extract the parameters of the general equilibrium model.
For this purpose, first, the model of justification and the equations of each section were explained based on theoretical foundations and some previous studies. Then optimization of each section was done by solving its equations and the model was simulated based on the economic realities of Iran and subsequently, the simulated model was fitted with the help of variables moments that the results confirm the relative success of the simulated model with the realities of Iran's economy. Also, the immediate response to the government's oil revenue shock on variables was examined, The results showed that any positive shocks to government oil revenues would lead to an expansionary fiscal policy by the government that This increases household incomes and, while stimulating the demand side, increases household consumption by increasing household consumption. An increase in the volume of household deposits also means more funds available to banks, which will result in lower interest rates and an increase in the supply of bank loans to increase investment in enterprises and increase production that the results are in line with the theoretical expectations and economic realities of the country.
 

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This study examines the effects of demographic changes including decreasing fertility and increasing life expectancy and retirement age on the financial sustainability of the pension fund in Iran using the overlapping generation model and the Stochastic Dynamic General Equilibrium (DSGE) approach. The results of simulation and evaluation of impulse response functions and evaluation of correlation coefficients show that there is a positive correlation between the variables of fertility and life expectancy with the financial deficit of the pension fund. With a negative shock in the fertility, the pension fundchr('39')s deficit reacts negatively and deviates in the negative direction from the long-term equilibrium level and the pension fundchr('39')s financial stability improves. However, savings, capital stock and output react to this Shocks, negatively. On the other hand, based on the impulse response functions, with the occurrence of a positive shock in life expectancy, the fund deficit reacts positively and deviates from the long-run equilibrium level in a positive direction, and savings, capital stock and production also respond to this shock positively. Also, with a positive shock to working period or increase in retirement age, the fundchr('39')s financial deficit reacts negatively and deviates from the long-term equilibrium in a negative direction, and savings, capital stock and output also respond positively to this shock. Due to the results, with the increase of positive shock during the working period or increasing the retirement age, the average long-run equilibrium level of the pension fund deficit decreases and financial stability of the pension fund improves. Based on the results, the implementation of the policy of increasing the length of service and increasing the retirement age is recommended as a useful tool for the improving financial sustainability of pension funds in Iran.