نوع مقاله : مقاله پژوهشی
عنوان مقاله English
نویسندگان English
This paper examines the asymmetric effect of inflation on the economic growth in Iran during the period 1990:2 – 2008:2. To that end, we use a smooth transition regression model which allows having a regime change in the relationship between the variables.
We found evidence of threshold behavior in the relationship between the inflation rate and the economic growth in Iran; such that, there is a threshold level of inflation which beyond that the relationship between these variables changes. This estimated threshold for the quarterly inflation rate is 4.56. The results also show that there is a positive contemporaneous relationship between the inflation rate and the economic growth in the first regime, where the inflation rate is below 4.56; however, for the periods with an inflation rate higher than 4.56 there is not any significant relationship between the inflation rate and the economic growth. In addition, the effects of the government expenditures and investment are regime-dependent and change over the time.
کلیدواژهها English
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