IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0169.html
   My bibliography  Save this article

Positive Mathematical Programming Approach

Author

Listed:
  • Sanaee, Davar

    (Ph.D. Candidate in Economics, Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran)

  • Mirzapour Babajan, Akbar

    (Assistant Professor of Economics, Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran (Corresponding Author))

  • Akbari Moghadam, Beitollah

    (Assistant Professor of Economics, Department of Economics, Qazvin Branch, Islamic Azad University, Qazvin, Iran)

  • Feshari, Majid

    (Associate Professor of Economics, Kharazmi University, Tehran, Iran)

Abstract

The main purpose of this paper is to investigate the effect of monetary policy on the value added in the basic metal Industries sector is based on the use of positive mathematical programming during the periode of 1990 - 2017. For achieving this, at first the long-run relationship between variables has been estimated by using of ARDL approach and then, the scenario designing and sensitivity analysis has been implemented through PMP model.The results of this study showed that the decreasing and incremental policies of monetary variables (liquidity and bank interest rate) in different scenarios have an effect on the added value of optimizing that subsection. Also, an important indicator of this method is to calculate the optimal value added of each sub-section in its base year and its targeting capability in some other scenarios. For example, in the first scenario, in the case of 5, 10, and 20 percent reduction in liquidity, value added will increase by 4, 9 and 18 percent in Basic Material Production industries. In this scenario, the drop in the policy variable will also increase the bank interest rate by as much as 3, 7 and 15 percent in the added value

Suggested Citation

  • Sanaee, Davar & Mirzapour Babajan, Akbar & Akbari Moghadam, Beitollah & Feshari, Majid, 2020. "Positive Mathematical Programming Approach," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 6(4), pages 217-250, February.
    • Handle: RePEc:ris:qjatoe:0169
    as

    Download full text from publisher

    File URL: https://ecoj.tabrizu.ac.ir/article_10367_f025fdf05672f7a6ce2e8cf73365d14c.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Monetary policy; Value added; Basic Metal production Industries; Positive Mathematical Programming Approach (PMP).;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sakineh Sojoodi (email available below). General contact details of provider: https://edirc.repec.org/data/fetabir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.