Causes of inflation in the Iranian economy, 1972-1990

Inflation has been the focus of numerous investigations in recent decades, both for developed and developing countries. Although there is a general understanding about the consequences of inflation, its causes and cure are still controversial issues among economists. None of the two competitive view...

Full description

Bibliographic Details
Main Author: Tavakkoli, Ahmad
Format: Thesis (University of Nottingham only)
Language:English
Published: 1996
Subjects:
Online Access:https://eprints.nottingham.ac.uk/11678/
_version_ 1848791333207015424
author Tavakkoli, Ahmad
author_facet Tavakkoli, Ahmad
author_sort Tavakkoli, Ahmad
building Nottingham Research Data Repository
collection Online Access
description Inflation has been the focus of numerous investigations in recent decades, both for developed and developing countries. Although there is a general understanding about the consequences of inflation, its causes and cure are still controversial issues among economists. None of the two competitive views concerned with developing countries , Monetarism and Structuralism, provides a wholly successful theoretical model to explain price behaviour. This thesis attempts to suggest a synthesis for more appropriate modeling. Empirically, the most commonly used modeling strategy has been to adapt a monetary model subject to some modifications for the developing countries, reflecting structural elements, which may be named an analytical model. This investigation considers much empirical evidence and points out the shortcomings of the models used and the econometric procedures carried out. In particular, several recent studies of inflation in the Iranian economy are evaluated. This evaluation indicates that the single equation estimation and/or ignorance of integration and co integration in these researches are two features to be questioned. This thesis uses a simultaneous equations model originally made for four non-oil developing countries. Adapting the model for Iran, a major oil exporting country, leads to a model containing three behavioural equations (price, government revenue and income) and two definitional equations (money and expected inflation). This model, treating income, money and government revenue as endogenous, attempts to take into account the special structural features of the economy beside monetary elements. A vector autoregressive approach in a multiple cointegration context is the estimation procedure used in this study. The results generally confirm predicted price determination and indicate the importance of the oil sector in both government revenue and production.
first_indexed 2025-11-14T18:26:50Z
format Thesis (University of Nottingham only)
id nottingham-11678
institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T18:26:50Z
publishDate 1996
recordtype eprints
repository_type Digital Repository
spelling nottingham-116782025-02-28T11:14:58Z https://eprints.nottingham.ac.uk/11678/ Causes of inflation in the Iranian economy, 1972-1990 Tavakkoli, Ahmad Inflation has been the focus of numerous investigations in recent decades, both for developed and developing countries. Although there is a general understanding about the consequences of inflation, its causes and cure are still controversial issues among economists. None of the two competitive views concerned with developing countries , Monetarism and Structuralism, provides a wholly successful theoretical model to explain price behaviour. This thesis attempts to suggest a synthesis for more appropriate modeling. Empirically, the most commonly used modeling strategy has been to adapt a monetary model subject to some modifications for the developing countries, reflecting structural elements, which may be named an analytical model. This investigation considers much empirical evidence and points out the shortcomings of the models used and the econometric procedures carried out. In particular, several recent studies of inflation in the Iranian economy are evaluated. This evaluation indicates that the single equation estimation and/or ignorance of integration and co integration in these researches are two features to be questioned. This thesis uses a simultaneous equations model originally made for four non-oil developing countries. Adapting the model for Iran, a major oil exporting country, leads to a model containing three behavioural equations (price, government revenue and income) and two definitional equations (money and expected inflation). This model, treating income, money and government revenue as endogenous, attempts to take into account the special structural features of the economy beside monetary elements. A vector autoregressive approach in a multiple cointegration context is the estimation procedure used in this study. The results generally confirm predicted price determination and indicate the importance of the oil sector in both government revenue and production. 1996 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/11678/1/339636.pdf Tavakkoli, Ahmad (1996) Causes of inflation in the Iranian economy, 1972-1990. PhD thesis, University of Nottingham. Inflation Iran
spellingShingle Inflation
Iran
Tavakkoli, Ahmad
Causes of inflation in the Iranian economy, 1972-1990
title Causes of inflation in the Iranian economy, 1972-1990
title_full Causes of inflation in the Iranian economy, 1972-1990
title_fullStr Causes of inflation in the Iranian economy, 1972-1990
title_full_unstemmed Causes of inflation in the Iranian economy, 1972-1990
title_short Causes of inflation in the Iranian economy, 1972-1990
title_sort causes of inflation in the iranian economy, 1972-1990
topic Inflation
Iran
url https://eprints.nottingham.ac.uk/11678/