We consider a general class of endogenous growth models with infinitely lived households and analyze how different budgetary rules affect the stability of the economy. We show that a discretionary fiscal policy implies that the government always violates its inter-temporal budget constraint along a balanced growth path, whereas a balanced budget rule tends to stabilize the economy. A rule based...

Article history: Received 21 June 2009 Received in revised form 6 April 2010 Accepted 27 June 2010 Available online 29 July 2010 Rational choice models predict that political competition and political participation have opposite effects on the size of government. We investigate these theories using data from a panel of 18 Latin American countries during the 20th century. Our research builds evi...

the study examines the relationship between the size of firms and their growth in iranian food and beverages industries. the study utilizes iranian industrial data, classified on the base of isic with 4-digit code. the study evaluates the validity of gibrat's law in the selected firms. the validity of the law has been examined by two methods. first, the panel analysis is applied and second...

This paper considers an endogenous growth model with productive government spending in which overlapping generations of agents vote sequentially on policy. With sequential majority voting, there is a multiplicity of politico-economic equilibria originating from self-fulfilling policy expectations. Some of these equilibria are Pareto-inefficient and there are endogenous cycles. A constitutional ...

in this paper, asymmetric effects of exchange rate fluctuation (according to positive and negative shocks) on real output were investigated. in the meantime, the study of behaviour of real output growth in iran’s economy over the period 1338-1386 was done. in specification of the output growth equation, in spite of considering positive and negative shocks of exchange rate, the effects of other ...

firm size and its impact on the firm performance examined in all of economics historical periods from different point of view. meanwhile, productivity is one the most important performance index for each firm, therefore so many studies tries to survey firm size impact on it. in iran also, economics literature replete with productivity studies but the impact of size on it rarely seen between the...

regarding the decentralization of credits management, this study examined the effect of fiscal policies on gross domestic product of the iranian provinces over the period 2001-2009. therefore, we used dynamic panel data and employed gmm-sys method to examine the model. the results show that the government expenditure and tax multiplier coefficients are less than one in short - run but greater t...