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index of smuggling in Iran from 1970 to 2002. The Multiple Indicators - Multiple Causes (MIMIC) econometric modelling is … incentives for illegal trade. More trade openness accompanies more illegal trade for the case of Iran. On average, the relative … size of smuggling is about 13% of the total trade in Iran. The absolute amount of smuggling per year is about $3 billion. …
Persistent link: https://www.econbiz.de/10005181341
development of government spending in major sections shapes the political institutions in Iran. This question has become … especially important due to recent international sanctions, aiming to change the political behavior of Iran. We use the impulse … provision spending in Iran. The results imply that a shock in positive changes of democratic quality of institutions leads to …
Persistent link: https://www.econbiz.de/10010739347
subsequent taxation in Iran. We use rich micro survey data covering more than 36,000 Iranian households in 2009. Our micro …
Persistent link: https://www.econbiz.de/10010781552
Although firms may face radically different production conditions, this dimension of firm heterogeneity is often overlooked. We model input demand across local factor markets, explicitly considering search costs which explain why firms care about both the price and availability of inputs. The...
Persistent link: https://www.econbiz.de/10010877649
In our analytical general equilibrium model where two polluting inputs can be substitutes or complements in production, we study the effects of a tax on one pollutant in two cases: one where both pollutants face taxes and the second where the other pollutant is subject to a permit policy. In...
Persistent link: https://www.econbiz.de/10010877846
We develop a model that combines competitive exchange of private commodities across endogenously formed groups with public good provision and global collective decisions. There is a tension between local and global collective decisions. In particular, we show that group formation and collective...
Persistent link: https://www.econbiz.de/10010889986
A rapidly rising carbon tax leads to faster extraction of fossil fuels and accelerates global warming. We analyze how general equilibrium effects operating through the international capital market affect this Green Paradox. In a two-region, two-period world with identical homothetic preferences...
Persistent link: https://www.econbiz.de/10011264741
We study the importance of uncertainty and public finance to the welfare ranking of three environmental policy instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The setup is the basic stochastic neoclassical growth model augmented with the assumptions...
Persistent link: https://www.econbiz.de/10008596572
This paper employs a general equilibrium model of imperfect competition and trade in which capital is used to establish firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price equalization and one with different factor prices. When...
Persistent link: https://www.econbiz.de/10009274515
This short paper reconsiders the popular result that the lower the probability of getting reelected, the stronger the incumbent politicians’ incentive to follow short-sighted, inefficient policies. The set-up is a general equilibrium model of endogenous growth and optimal fiscal policy, in...
Persistent link: https://www.econbiz.de/10005765948