University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 The Impact of Urbanization and its Overflows on Income Distribution of Iran Provinces using Spatial Econometrics Approach The Impact of Urbanization and its Overflows on Income Distribution of Iran Provinces using Spatial Econometrics Approach 1 26 4570 FA Ali Reza Shakibaee Associate Professor of Economics, Shahid Bahonar University of Kerman Mohammad Reza Ahmadi Nejad MA Student of Economics, Shahid Bahonar University of Kerman Zahra Kamaladdini MA Student of Economics, Shahid Bahonar University of Kerman Fatemeh Taleghani Ph.D Student of Economics, Shahid Bahonar University of Kerman Journal Article 2016 03 08 One of the goals of establishment of Islamic Republic of Iran was expansion of justice that appropriate distribution of income in society is one of its most important aspects. Income distribution in every society is resulted from economic-social structure of that society, particularly labor market situation. Urbanization can affect the income distribution due to population migration and labor force from rural to urban areas and through the impact on labor market. This study examined the impact of urbanization on income distribution in 25 provinces of Iran in the period of 2001-2011 using spatial econometrics. The results show that an increase in the ratio of urbanization to human development index has led that income to be distributed fairer in the provinces of Iran. In addition, by comparing special maps of income distribution and the ratio of urbanization in the beginning and end of the studied period, it is concluded that the impact of urbanization on income distribution has not been a fixed process that this issue is consistent with the results of the special estimation. One of the goals of establishment of Islamic Republic of Iran was expansion of justice that appropriate distribution of income in society is one of its most important aspects. Income distribution in every society is resulted from economic-social structure of that society, particularly labor market situation. Urbanization can affect the income distribution due to population migration and labor force from rural to urban areas and through the impact on labor market. This study examined the impact of urbanization on income distribution in 25 provinces of Iran in the period of 2001-2011 using spatial econometrics. The results show that an increase in the ratio of urbanization to human development index has led that income to be distributed fairer in the provinces of Iran. In addition, by comparing special maps of income distribution and the ratio of urbanization in the beginning and end of the studied period, it is concluded that the impact of urbanization on income distribution has not been a fixed process that this issue is consistent with the results of the special estimation.

https://ecoj.tabrizu.ac.ir/article_4570_d5395f4039ec317dd55c11a9c1e7a1fc.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 Monopoly Power in Iranian Rubber and Plastics Industries: A Comparative Monopoly Power in Iranian Rubber and Plastics Industries: A Comparative 27 48 4583 FA Farhad Khodadad Kashi Professor of Economics, Payame Noor University Samaneh Norani Azad Assistent Professor of Economics, Payame Noor University Khadijeh Geravand MA of Economics, Payame Noor University Journal Article 2016 03 14 The main purposes of this article are the evaluation of competition and comparison of market power in rubber and plastics industries with two non-structural approaches. To meet this ends Bresnehan-Lau (1982) and Panzar-Ross (1987) models were used. Data in 4-digit industries for rubber and plastics sub-sectors over the period of 1995-2011 collected from Iran’s statistical center. Equations used in this study consist of supply-demand and reduced form revenue functions estimated with two stage least squares fixed effect (FE2SLS) and least square dummy variables (LSDV) methods respectively. Results indicated that the extent of conjectural variation coefficient was about θ=0.82 because of the fact that firms cooperate with each other, therefore there was imperfect competition structure in this sector. On the other hand, the sum of elasticity’s reduced form revenue with respect to input price was about H=0.81, so market structure was featured as a monopolistic competition. In addition, Comparative results of two approaches confirmed depletion of competition in Iranian rubber and plastics industries. The main purposes of this article are the evaluation of competition and comparison of market power in rubber and plastics industries with two non-structural approaches. To meet this ends Bresnehan-Lau (1982) and Panzar-Ross (1987) models were used. Data in 4-digit industries for rubber and plastics sub-sectors over the period of 1995-2011 collected from Iran’s statistical center. Equations used in this study consist of supply-demand and reduced form revenue functions estimated with two stage least squares fixed effect (FE2SLS) and least square dummy variables (LSDV) methods respectively. Results indicated that the extent of conjectural variation coefficient was about θ=0.82 because of the fact that firms cooperate with each other, therefore there was imperfect competition structure in this sector. On the other hand, the sum of elasticity’s reduced form revenue with respect to input price was about H=0.81, so market structure was featured as a monopolistic competition. In addition, Comparative results of two approaches confirmed depletion of competition in Iranian rubber and plastics industries.

https://ecoj.tabrizu.ac.ir/article_4583_90129961ada05ede52d4c3ef114995c8.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 Comparison of Consumption Based Capital Asset Pricing (CCAPM) and Housing CCAPM (HCCAPM) Model in Explaining Stock Returns in Iran Comparison of Consumption Based Capital Asset Pricing (CCAPM) and Housing CCAPM (HCCAPM) Model in Explaining Stock Returns in Iran 49 72 4568 FA Azam Mohammadzadeh Ph.D. Student in Financial Economics, University of Sistan and Baluchestan Mohammad Nabi Shahikitash Associate Professor of Economics, University of Sistan and Baluchestan Reza Roshan Assistant Professor of Economics, University of Persian Gulf 0000-0003-0137-9625 Journal Article 2016 03 08 <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">One of the most important issues in financial economics is the capital asset pricing since in this context various models have been introduced and tested in different economies. One of these models is consumption-based capital asset pricing model (CCAPM) which in this model changes in stock returns related to changes in consumption. Housing CCAPM (HCCAPM) is a derivative of CCAPM model that was introduced in 2007 by Piazzesi et al (2007). In this model representative agent’s utility is function of aggregate of non-housing consumption and housing service consumption while in the model CCAPM, total consumer expenditure considered as a macroeconomic variable. The main purpose of this paper is to investigate effect of housing services and a nonhousing consumption good on stock returns. In this paper HCCAPM and CCAPM model is estimated for quarterly data 1367 to 1391 period of the Iran with generalized method of moments (GMM). The results show that all parameters are significant. Estimation of parameters in both models indicates economic factors are patient and very risk-averse. Comparison of these models using loglinear reduced form<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">and<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">Hansen and Jagannathan (HJ)-distance function indicate that CCAPM model explains stock returns more better than HCCAPM model. <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">One of the most important issues in financial economics is the capital asset pricing since in this context various models have been introduced and tested in different economies. One of these models is consumption-based capital asset pricing model (CCAPM) which in this model changes in stock returns related to changes in consumption. Housing CCAPM (HCCAPM) is a derivative of CCAPM model that was introduced in 2007 by Piazzesi et al (2007). In this model representative agent’s utility is function of aggregate of non-housing consumption and housing service consumption while in the model CCAPM, total consumer expenditure considered as a macroeconomic variable. The main purpose of this paper is to investigate effect of housing services and a nonhousing consumption good on stock returns. In this paper HCCAPM and CCAPM model is estimated for quarterly data 1367 to 1391 period of the Iran with generalized method of moments (GMM). The results show that all parameters are significant. Estimation of parameters in both models indicates economic factors are patient and very risk-averse. Comparison of these models using loglinear reduced form<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">and<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-bidi-language: FA; mso-ascii-theme-font: major-bidi; mso-hansi-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-fareast-theme-font: minor-fareast;">Hansen and Jagannathan (HJ)-distance function indicate that CCAPM model explains stock returns more better than HCCAPM model.

https://ecoj.tabrizu.ac.ir/article_4568_fcd7fdad7dab7230a6a3464d039d00f0.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 An Investigation of Twin Deficit Hypothesis in Iran: Two Regimes Threshold Vector Autoregressive Approach An Investigation of Twin Deficit Hypothesis in Iran: Two Regimes Threshold Vector Autoregressive Approach 73 92 4569 FA Mohammadreza Kohansal Professor of Agricultural Economics, Ferdowsi University of Mashhad Parisa Alizadeh Ph.D student of Agricultural Economics, Ferdowsi University of Mashhad Journal Article 2016 03 08 One of the most important economic problems of many developing countries is happening of the budget deficit and the current account deficit at the same time, that have adverse effects on performance of various sectors of the economy. In this study the twin deficit hypothesis in Iran was tested. For this purpose nonlinear relationship between budget deficit and current account deficit in the period of 1971-2012 was reviewed. At first, the stationary of time series variables examined. Then Johansen co-integration test was performed. There was a co-integration vector between budget deficit and current account deficit. The causality test in a frame of a vector autoregressive model showed a bi-directional causal relationship between the variables. Then the non-linearity test was performed and after confirmation of non-linearity, two regimes threshold vector autoregressive model was estimated. Also the unit root test of non-linear models (KS) was applied. The results showed that the current account deficit in the short run will be affected by budget deficit and current account deficit increase with the increasing of the budget deficit. But in the long run, these two variables are treated as independent together. One of the most important economic problems of many developing countries is happening of the budget deficit and the current account deficit at the same time, that have adverse effects on performance of various sectors of the economy. In this study the twin deficit hypothesis in Iran was tested. For this purpose nonlinear relationship between budget deficit and current account deficit in the period of 1971-2012 was reviewed. At first, the stationary of time series variables examined. Then Johansen co-integration test was performed. There was a co-integration vector between budget deficit and current account deficit. The causality test in a frame of a vector autoregressive model showed a bi-directional causal relationship between the variables. Then the non-linearity test was performed and after confirmation of non-linearity, two regimes threshold vector autoregressive model was estimated. Also the unit root test of non-linear models (KS) was applied. The results showed that the current account deficit in the short run will be affected by budget deficit and current account deficit increase with the increasing of the budget deficit. But in the long run, these two variables are treated as independent together.

https://ecoj.tabrizu.ac.ir/article_4569_b174a88cd927b608bf2d23c03ce1cb2f.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 The Effect of Institutions on Development of Islamic Countries in Group D8 The Effect of Institutions on Development of Islamic Countries in Group D8 93 118 4584 FA Behzad Amiri Ph.D Student of Economic, Bu-Ali Sina University. Abolfazl Shahabadi Associate Professor of Economics, Bu-Ali Sina University Journal Article 2016 03 14 Having proper level of development to enjoy from its benefit (wealth, welfare and equality) is one of priorities every society. There are many factors that effect on development. One of these factors is institutions and it has dedicated much discussion among development researchers and politician. Institutions by reducing the transaction costs, decrease investment risk and greater participation of people in economic activities, social and political can have a positive impact on development process .In this regard, in this paper, we investigate the effect of institutions (it shows using governance indicators) on development in the Islamic member countries of Group D8 within the period 1999-2013 by panel data method. The result show that variable of institutions has positive and significant effect on development. Also, variable of capital, variable of FDI and variable of equality have positive and significant effect on development. Human capital variable has positive and insignificant effect on development. Having proper level of development to enjoy from its benefit (wealth, welfare and equality) is one of priorities every society. There are many factors that effect on development. One of these factors is institutions and it has dedicated much discussion among development researchers and politician. Institutions by reducing the transaction costs, decrease investment risk and greater participation of people in economic activities, social and political can have a positive impact on development process .In this regard, in this paper, we investigate the effect of institutions (it shows using governance indicators) on development in the Islamic member countries of Group D8 within the period 1999-2013 by panel data method. The result show that variable of institutions has positive and significant effect on development. Also, variable of capital, variable of FDI and variable of equality have positive and significant effect on development. Human capital variable has positive and insignificant effect on development.

https://ecoj.tabrizu.ac.ir/article_4584_1a5c07b50cb5896173a3204e4d1e552e.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 Investigation the Effect of Banking Marketization in Monetary Policy Transmission through Lending Channel Investigation the Effect of Banking Marketization in Monetary Policy Transmission through Lending Channel 119 144 4605 FA Mojtaba Bahmani Assistant Professor of Economics, Shahid Bahonar University Siminosadat Mirhashemi Naeini Ph.D Student of Economics, Shahid Bahonar University Journal Article 2016 03 15 Monetary policy transmission through changes in bank facilities is known as one of the key channels of influence of monetary policy. The strength of this channel of monetary policy transmission is highly dependent on economic conditions. The level of relying on the market mechanism in the banking industry is one of the variables that influence the transmission of monetary policy through lending channel that is called banking marketization. The aim of this paper is to analyze the hypothesis that the bank lending channel of monetary policy shocks imposed by monetary authorities is influenced by marketization in the banking system or not? To answer this question have been used two indexes for banking marketization. The ratio of the deposits of non-state-owned banks to the total deposits of all sample banks is the first index and the proportion of loans to non-state-owned enterprises in the total loans of sample banks is the second index. Also multiplication between marketization index and monetary condition index has been regarded to study the effect of increase in banking marketization on monetary policy transmission. Generalized Method of Moments or GMM method is used to estimate the model, and the data of balance sheet of 26 banks in the banking network from 2001 to 2012 has been used. The results show that as expected, with increase the degree of marketization in banking network, the banking network facilities is increased. In addition, banking marketization<span style="line-height: 115%; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-hansi-font-family: Calibri; mso-bidi-language: FA; mso-hansi-theme-font: minor-latin; mso-ansi-language: EN-GB;" lang="EN-GB"> will weaken the transmission of monetary policy through bank lending. Monetary policy transmission through changes in bank facilities is known as one of the key channels of influence of monetary policy. The strength of this channel of monetary policy transmission is highly dependent on economic conditions. The level of relying on the market mechanism in the banking industry is one of the variables that influence the transmission of monetary policy through lending channel that is called banking marketization. The aim of this paper is to analyze the hypothesis that the bank lending channel of monetary policy shocks imposed by monetary authorities is influenced by marketization in the banking system or not? To answer this question have been used two indexes for banking marketization. The ratio of the deposits of non-state-owned banks to the total deposits of all sample banks is the first index and the proportion of loans to non-state-owned enterprises in the total loans of sample banks is the second index. Also multiplication between marketization index and monetary condition index has been regarded to study the effect of increase in banking marketization on monetary policy transmission. Generalized Method of Moments or GMM method is used to estimate the model, and the data of balance sheet of 26 banks in the banking network from 2001 to 2012 has been used. The results show that as expected, with increase the degree of marketization in banking network, the banking network facilities is increased. In addition, banking marketization<span style="line-height: 115%; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-hansi-font-family: Calibri; mso-bidi-language: FA; mso-hansi-theme-font: minor-latin; mso-ansi-language: EN-GB;" lang="EN-GB"> will weaken the transmission of monetary policy through bank lending.

https://ecoj.tabrizu.ac.ir/article_4605_278dd50917484d6c92c10387fee90fe6.pdf

University of Tabriz Applied Theories of Economics 2423-6586 2 3 2015 11 22 The Commodity Futures Contract Pricing Using Spot Price Dynamics: Implication of Models in Iran’s Gold Futures Market The Commodity Futures Contract Pricing Using Spot Price Dynamics: Implication of Models in Iran’s Gold Futures Market 145 164 4674 FA Hossein Esmaeili Razi Assistant Professor in Economics and Banking, Institute of Hasht Behesht Rahim Dallali Esfahani Professor in Economics, University of Isfahan Saeid Samadi Associate Professor in Economics, University of Isfahan Afshin Parvardeh Associate Professor in Statistics, University of Isfahan Journal Article 2016 04 10 Futures contract is one of the most important derivatives that is used in financial markets in all over the world to buy or sell an asset or commodity in the future. Pricing of this tool depends on expected price of asset or commodity at the maturity date. According to this, theoretical futures pricing models try to find this expected price in order to use in the futures contract. So in this article, three futures pricing models have been considered. In the first model, Ross (1995) and Schwartz (1997) one-factor pricing model without spot price jump will be presented. In two other models, expansion of this model with using of jump-diffusion processes and considering the stochastic jump in spot price will be presented. In these models is assumed that magnitude of spot price jump has an exponential distribution or uniform distribution. Then, to experimental study of theoretical models, Iran’s gold coins futures market data will be used and parameters are stimated with Kalman filter algorithm and maximum likelihood function. Futures contract is one of the most important derivatives that is used in financial markets in all over the world to buy or sell an asset or commodity in the future. Pricing of this tool depends on expected price of asset or commodity at the maturity date. According to this, theoretical futures pricing models try to find this expected price in order to use in the futures contract. So in this article, three futures pricing models have been considered. In the first model, Ross (1995) and Schwartz (1997) one-factor pricing model without spot price jump will be presented. In two other models, expansion of this model with using of jump-diffusion processes and considering the stochastic jump in spot price will be presented. In these models is assumed that magnitude of spot price jump has an exponential distribution or uniform distribution. Then, to experimental study of theoretical models, Iran’s gold coins futures market data will be used and parameters are stimated with Kalman filter algorithm and maximum likelihood function.

https://ecoj.tabrizu.ac.ir/article_4674_badc9bbb0a9b7b018b6fca6e804364fe.pdf