Asymmetric Effects of Oil Income Growth on Inflation in Iran: VECM Approach

Because of much dependence to oil revenues, Oil price fluctuations have much affect on Iranian economy. Since government possess a great deal of oil revenues and those financial government expenditure, then identifying manner and stringency of affecting shocks arise from oil revenue growth on inflat...

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Bibliographic Details
Published inFaṣlnāmah-i pizhūhish/nāmah-i iqtiṣādī (Online) Vol. 12; no. 45; pp. 201 - 226
Main Authors Akbar Komeyjani, Mohammad Hadi Sobhaniani, Saeid Bayat
Format Journal Article
LanguagePersian
Published Allameh Tabataba'i University Press 01.06.2012
Subjects
asymmetric effects
inflation
oil income growth
vecm method
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ISSN1735-210X
2476-6453

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Summary:Because of much dependence to oil revenues, Oil price fluctuations have much affect on Iranian economy. Since government possess a great deal of oil revenues and those financial government expenditure, then identifying manner and stringency of affecting shocks arise from oil revenue growth on inflation is very important. Subject of this paper is “Asymmetric effects of oil revenue growth on inflation in Iranian economy applying VECM method”. Our results indicate that both positive and negative shocks arise from oil revenue growth are inflationary.
ISSN:1735-210X
2476-6453