Effect of rainfall changes on economic variables using a general equilibrium model

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Abstract:

The country's economy is dependent on many variables that play a role in growth and development of the country. There are many variables in the economy that effect on country's economy. On the other hand rainfall is one of important factor of climate change that affected on economic strategic programs such as agriculture sector programs. Rainfall Changes effect on many economic variables that in this study evaluated some of the economic variables. The aim of this study was to evaluate rainfall shocks on some economic variables using a general equilibrium model, that including best scenario in terms of highest rainfall, the worst scenario in terms of lowest rainfall and normal scenario in terms of average rainfall. To check these changes in the agricultural sector a set of produced goods in this section is considered separately and other sections are considered in general. The results showed that in the best rainfall scenario has increased production of this commodity about 14%. All goods have been faced with reduced consumption from 0.3% to 10.3% in worst rainfall scenario, the greatest reduction of products related to agricultural products. Rainfall increased the price of all goods, except for industry and these increases are in the range of 0.25% to 28.7%. Both private and public investment influenced by rainfall change.

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Journal title

volume 8  issue 3

pages  0- 0

publication date 2018-09-01

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