1
Assistant Professor in Economics, University of Shiraz, Shiraz, Iran- Corresponding Author
2
Ph.D. Student of Economics, University of Shiraz, Shiraz, Iran
Abstract
In this paper, we analyze the pro-cyclical behavior of fiscal policy in I. R.IRAN during1974-2007. For this aim, we estimate an econometric model with ARDL co-integration technique. The results showed that first; Woo (2009) hypothesis is accepted. In other words, in short- and long-run increases in social polarizations (income and education inequalities), increases fiscal policy pro-cyclicality. Second; Diallo (2009) hypothesis is accepted .In other words, institutional qualities in short- and long-run have the positive and significant effects on fiscal policy pro-cyclicality. Third; Oil price volatility has the positive and significant effects on fiscal policy pro-cyclicality.
Samadi, A. H., & Oujimehr, S. (2012). Explaining pro-cyclicality of fiscal policy in I. R. IRAN (1974-2007) with emphasis on oil price volatility. Journal of Economic Essays; an Islamic Approach, 9(18), 29-57.
MLA
Ali Hussein Samadi; Sakineh Oujimehr. "Explaining pro-cyclicality of fiscal policy in I. R. IRAN (1974-2007) with emphasis on oil price volatility". Journal of Economic Essays; an Islamic Approach, 9, 18, 2012, 29-57.
HARVARD
Samadi, A. H., Oujimehr, S. (2012). 'Explaining pro-cyclicality of fiscal policy in I. R. IRAN (1974-2007) with emphasis on oil price volatility', Journal of Economic Essays; an Islamic Approach, 9(18), pp. 29-57.
VANCOUVER
Samadi, A. H., Oujimehr, S. Explaining pro-cyclicality of fiscal policy in I. R. IRAN (1974-2007) with emphasis on oil price volatility. Journal of Economic Essays; an Islamic Approach, 2012; 9(18): 29-57.
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