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Zahra Mila Elmi

Academic rank: Professor
ORCID:
Education: PhD.
ScopusId:
Faculty: Faculty of Economics and Administrative Sciences
Address:
Phone: 09112153929

Research

Title
The Impact of Fiscal Policy on Macroeconomic Variables: New Evidence from a DSGE Model
Type
JournalPaper
Keywords
Fiscal policy; DSGE model; Distortionary taxation; Iran
Year
2017
Journal international journal of business and development studies
DOI
Researchers َAhmad Jafari Samimi ، Naser Khiabani ، Zahra Mila Elmi ، Narges Akbarpour roshan

Abstract

The purpose of this article is to analyze the macroeconomic impacts of fiscal policy in Iran using a new-Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. The model takes into account distortionary taxations on wage, dividend, and consumption, while government expenditures are broken down into consumption of goods and services, and investment. The model is calibrated for Iran based on the estimated parameters by Bayesian method. To do so, a data set from 1981 to 2016 is used. The impulse response functions illustrate that an increase in consumption tax rate has a larger impact on the contraction of the economy than wage tax rate whereas the expansionary effects of government investment is much larger than government consumption expenditures.