Evaluation of Nature and Cyclicality of Fiscal Policy in I. R. IRAN (1974-2007) (Text in Persian)

Authors

1 Assistant Professor in Economics, University of Shiraz, Shiraz, Iran

2 Master of Science in Economics, University of Shiraz, Shiraz

Abstract

The purpose of this paper is to study the role of fiscal policy in stabilization in I. R. IRAN during 1974-2007. Our analysis is articulated in two steps. The first step is the analysis of Keynesian or non-Keynesian nature of fiscal policy. The second step is the characterization of cyclical behavior of fiscal policy. The results show that، fiscal policy has Keynesian nature، but behaves pro-cyclically. Taken together these two finding imply that fiscal policy in I. R. IRAN is a cause of volatility and not a tool for stabilization.

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