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Examining the long-term effect of Brainard's uncertainty and banking stability on Iran's economic growth
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Masoud Emamei1   , Roya Aleeomran2 , Sima Eskandari Sabzi3 |
1- Doctoral student, Department of Economics, Mianeh Islamic Azad University; Iran
2- Associate Professort, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran , Aleemran@iaut.ac.ir
3- Associate Professor, Department of Economics, Mianeh Branch, Middle Islamic Azad University, Iran. |
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Abstract: (529 Views) |
This research aims to investigate the long-term impact of Brainard's uncertainty and banking stability on Iran's economic growth; Therefore, it is practical in terms of purpose and analytical in terms of causal type. The statistical population is all the banks admitted to the Tehran Stock Exchange. The model presented in this research includes four sectors: households, companies, banks and the government. Thus, the stochastic dynamic general equilibrium model was designed according to the long-term conditions of Brainard's uncertainty, monetary policy and research objective. For this purpose, first the utility function of the household was explained and then the optimal equations of the household sector were extracted from the utility maximization process according to the budget constraints. After that, the production function was explained in terms of the assumption of price and wage inflexibility competition, and optimal equations were obtained from the company's profit maximization process. Also, the banking sector was added to the model, which is one of the initiatives and innovations of the present research. The banking sector, like a producer, seeks maximum profit, and through this, the optimal equations of this sector were also obtained. Finally, the government and central bank were also added to the model according to the conditions of Iran's economy. To solve the model, first all the equations must be linearized, so in the next step, the linearization process was done in different ways. The next step is to determine the parameters of the model, which was obtained from the combination of calibration and estimation methods, and the model was solved using the random dynamic general equilibrium model solution methods |
Article number: 7 |
| Keywords: Economic growth. Banking stability, Brainard's uncertainty |
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Full-Text [PDF 1125 kb]
(146 Downloads)
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Article type: Research |
Subject:
Special
Received: 2023/11/2 | Accepted: 2024/02/3 | Published: 2024/08/31
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