IDEAS home Printed from https://ideas.repec.org/p/ekd/006666/7692.html
   My bibliography  Save this paper

Is The Tax System in Iran an Efficient System? A Comparing of Fiscal Policies Effects on Iran Economy, by A Dynamic CGE Model

Author

Listed:
  • Masoome Fouladi
  • Zahra Adel-Barkhordar

Abstract

Although there are many debates about the extent of government intervention and size of it, government intervention in the economy is unavoidable. Therefore government spending and tax are irresolvable components of the economy. Government expenditure and tax are fiscal policy instruments but how much they are effective and useful has been a challenge through economists. It seems and efficiency of these instruments depends on components of them. It means beside the size of government expenditure and quantity of tax, share of different expenditures in total expenditure and also share of different kinds of tax in total revenue tax are important for studying. In order to examine all aspect we use a dynamic computable general equilibrium model. The model solves for a sequence of single period equilibrium, thereby it is a recursive dynamic CGE model. The results show that according to the targets of policymakers, any taxes can be effective. But it should be noted that in Iran's oil economy declining in private spending to be offset by increasing government. If the oil is removed from the economy, raising tax will have a negative impact on production and it would be much more than the oil economy.

Suggested Citation

  • Masoome Fouladi & Zahra Adel-Barkhordar, 2014. "Is The Tax System in Iran an Efficient System? A Comparing of Fiscal Policies Effects on Iran Economy, by A Dynamic CGE Model," 2nd International Conference on Energy, Regional Integration and Socio-Economic Development 7692, EcoMod.
    • Handle: RePEc:ekd:006666:7692
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/tax%20system%20paper-revised1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mahmoud Wahab, 2004. "Economic growth and government expenditure: evidence from a new test specification," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2125-2135.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. António Afonso & José Alves, 2017. "Reconsidering Wagner’s law: evidence from the functions of the government," Applied Economics Letters, Taylor & Francis Journals, vol. 24(5), pages 346-350, March.
    2. Antonio Afonso & Jose Alves, 2015. "The Role of Government Debt in Economic Growth," Hacienda Pública Española / Review of Public Economics, IEF, vol. 215(4), pages 9-26, December.
    3. V. Chandran Govindaraju & Ramesh Rao & Sajid Anwar, 2011. "Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views," Economic Change and Restructuring, Springer, vol. 44(3), pages 203-219, August.
    4. Hiroshi Ono, 2014. "The government expenditure-economic growth relation in Japan: an analysis by using the ADL test for threshold cointegration," Applied Economics, Taylor & Francis Journals, vol. 46(28), pages 3523-3531, October.
    5. Irandoust, Manuchehr, 2019. "Wagner on government spending and national income: A new look at an old relationship," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 636-646.
    6. Dimitrios Sideris, 2007. "Wagner's Law in 19th Century Greece: A Cointegration and Causality Analysis," Working Papers 64, Bank of Greece.
    7. Christopher P. P. Shafuda & Utpal Kumar De, 2020. "Government expenditure on human capital and growth in Namibia: a time series analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    8. Benoît Le Maux & Kristýna Dostálová & Fabio Padovano, 2020. "Ideology or voters? A quasi-experimental test of why left-wing governments spend more," Public Choice, Springer, vol. 182(1), pages 17-48, January.
    9. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    10. Jesus Clemente & Carmen Marcuello & Antonio Montañes, 2012. "Government Social Spending and GDP: has there been a change in social policy?," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2895-2905, August.
    11. Philip Arestis & Hüseyin Şen & Ayşe Kaya, 2021. "On the linkage between government expenditure and output: empirics of the Keynesian view versus Wagner’s law," Economic Change and Restructuring, Springer, vol. 54(2), pages 265-303, May.
    12. Narayan, Seema & Rath, Badri Narayan & Narayan, Paresh Kumar, 2012. "Evidence of Wagner's law from Indian states," Economic Modelling, Elsevier, vol. 29(5), pages 1548-1557.
    13. Narayan, Paresh Kumar & Nielsen, Ingrid & Smyth, Russell, 2008. "Panel data, cointegration, causality and Wagner's law: Empirical evidence from Chinese provinces," China Economic Review, Elsevier, vol. 19(2), pages 297-307, June.
    14. Mohammad Mafizur Rahman & Istihak Rayhan & Nahid Sultana, 2023. "How Does Electricity Affect Economic Growth? Examining the Role of Government Policy to Selected Four South Asian Countries," Energies, MDPI, vol. 16(3), pages 1-17, February.
    15. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Fabio PADOVANO, 2017. "Ideology and Public Policies: A Quasi-Experimental Test of the Hypothesis that Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-01-ccr, Condorcet Center for political Economy.
    16. Manuel Jaén-García, 2018. "Wagner’s Law: A Revision and a New Empirical Estimation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 224(1), pages 13-35, March.
    17. Johannes Fedderke & John Luiz & Raphael Kadt, 2008. "Using fractionalization indexes: deriving methodological principles for growth studies from time series evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 85(2), pages 257-278, January.
    18. Marco Gallegati & Massimo Tamberi, 2022. "Long swings in the growth of government expenditure: an international historical perspective," Public Choice, Springer, vol. 192(3), pages 227-248, September.
    19. Wing Yuk, 2005. "Government Size and Economic Growth: Time-Series Evidence for the United Kingdom, 1830-1993," Econometrics Working Papers 0501, Department of Economics, University of Victoria.
    20. Alfonso Arpaia & Alessandro Turrini, 2008. "Government expenditure and economic growth in the EU: long-run tendencies and short-term adjustment," European Economy - Economic Papers 2008 - 2015 300, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

    More about this item

    Keywords

    Iran; Tax and public finance;

    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:ekd:006666:7692. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.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.