I ran’s economy is suffering from sharp and persistent economic shocks and agriculture plays an undeniable role in its economic growth and development. The aim of this paper is to study the relative contributions of various macroeconomic shocks to generating fluctuations in Iran’s agriculture sector. To do so, a Dynamic Stochastic General Equilibrium (DSGE) model, emphasizing on the ...

We propose a large-scale Bayesian VAR model with factor stochastic volatility to investigate the macroeconomic consequences of international uncertainty shocks on the G7 countries. The factor structure enables us to identify an international uncertainty shock by assuming that it is the factor most correlated with forecast errors related to equity markets and permits fast sampling of the model. ...

Macroeconomic models are usually developed in a large framework that comprises hundreds of equations. Some pitfalls, however, are inevitable such as a partial failure of forecasts and some theoretical shortcomings of a large macroeconomic model (Lawson 1992 and Wallis 1989). In the early 1990s, small scale macroeconomic model (SSMM) emerged as an alternative tool for comparing the results obtai...

This paper sets out a version of the Taylor-Romer model of short-run macroeconomic equilibrium which can be used for teaching undergraduate economics principles courses.The aim is to generate a model with the proven advantages of the IS-LM framework but with a more realistic description of central bank behaviour.The paper then provides a dynamic analysis of longer-term adjustment using a phase ...

The paper studies the dynamic macroeconomic and welfare effects of tax policy in the context of an overlapping-generations model of the Yaari-Blanchard type for a closed economy. The model is extended to allow for endogenous labor supply and three tax instruments—namely, a capital tax, labor income tax, and consumption tax. It is shown that labor taxes increase welfare of old generations wherea...

OBJECTIVE To analyze the relationship between macroeconomic conditions and health in Brazil. METHODS The analysis of the impact of employment and income on mortality in Brazil was based on panel data from Brazilian states between 1981 and 2002. Mortality rates obtained from the national mortality database was used as a proxy for health status, whereas the variables employment, income, and ill...

The aim of this paper is determination of an optimal policy rule for Iranian economy from an Islamic perspective. This study draws on an Islamic instrument known as the Musharakah contract to design a dynamic stochastic general equilibrium model. In this model the interest rate is no longer considered as a monetary policy instrument and the focus is on the impact of economic shocks on the Dynam...

Hidden in Aristotle’s Politics there is a macroeconomic model of the economy of the city-state. The elements of which this model in constructed are the following: the territorial size of the city, the division of the land between public and private, the size of the population and the Aristotelian notion of good life. The model describes the long-run equilibrium position of the economy of the ci...

The restrictive assumptions imposed by the traditional methods of aggregation prevented so far a sound analysis of complex system of feedback between microeconomic variables and macroeconomic outcomes. This issue seems to be crucial in macroeconomic modelling, in particular for the analysis of financial fragility, as conceived in the Keynesian and New Keynesian literature. In the present paper ...