Abstract T his paper is to convince the usage of the nonlinear unit root tests when dealing with a nonlinear model. To do so, the stationary test for variables in a model titles “Fiscal Reaction Function in Iran” has been applied according to both the ordinary and the Nonlinear Dickey-Fuller (NDF) tests. Results show that while variables under investigation are stationary ...

the aim of this paper is to investigate the existence of the new non-ricardian regime policy in iranian economy. we detected signs of the non-ricardian regime from quarterly data of 1369 to 1391. to investigate further a dynamic stochastic general equilibrium model is designed to estimate the fiscal and monetary parameters using a bayesian approach. our results indicated a passive monetary poli...

The objective of this study is to verify the dynamics between fiscal policy, measured by public debt, and monetary policy, measured by a reaction function of a central bank. Changes in monetary policies due to deviations from their targets always generate fiscal impacts. We examine two policy reaction functions: the first related to inflation targets and the second related to economic growth ta...