this research follows two aims in case of the iranian economy. first, study of the presence of inflation persistency, and second, looking for an optimal monetary policy rule. results show that inflation in the economy of iran is persistent, in which, short-term and long-term effects of monetary policy should be considered. for this purpose, a loss function for the central bank with arguments of...

The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) is changing its method of measuring the growth of the U.S. economy. Shifts in the structure of the economy—particularly the spectacular fall in computer prices—have meant that BEA’s traditional “fixed-base-year” method of tracking the nation’s gross domestic product (GDP) has tended to overstate growth in recent years. As a res...

This paper studies the effects of a Pigouvian tax on energy use on the growth path of a model economy where market structure is endogenous and jointly determined with the rate of technological change. Because this economy does not exhibit the scale effect (a positive relation between growth and aggregate effort in R&D), the tax has no effect on the economy’s steady-state growth rate. It has, ho...

Stress in financial markets influences economic agents’ behavior by creating uncertainty and changing the expectations. Critical financial stress can lead to financial crisis. Financial crises are among the events always present in the world economy. Iran is not an exception. This paper aims to study the impact of financial stresses on Iran’s per capita GDP. By using ARDL (Auto Regressive Distr...

This paper examines the recent growth of the opium economy in North Eastern Afghanistan. A detailed analysis of one village in Badakshan Province reveals profound changes in the local economy and social institutions. The paper describes two major shifts in the local economy (1) the switch from wheat to poppy cultivation (2) the shift from the livestock trade to the opium trade. It then examines...