Capital Stock Simulation by Hartwick Rule in Iran

Saleh Ghavidel (), Mahmoud Mahmoudzadeh (), Mir Hosein Mousavi () and Elham Berimani ()
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Saleh Ghavidel: Department of Economic, Firoozkooh Branch, Islamic Azad University, Firoozkooh
Mahmoud Mahmoudzadeh: Department of Economic, Firoozkooh Branch, Islamic Azad University, Firoozkooh
Mir Hosein Mousavi: ALZAHRA UNIVERSITY
Elham Berimani: Department of Economic, Firoozkooh Branch, Islamic Azad University, Firoozkooh

No 2804577, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: Fully reinvest of natural resource rents in foreign assets or productive capital such as buildings, roads, machines, human capital or health so-called Hartwick rule. The aim of this paper is to estimate the capital stock in Iran by Hartwick Rule. In other word we estimate PIM method and Hartwick rule for calculate capital stock. The result show that estimated capital stock by Hartwick rule is more than PIM method. Therefore, in Iranian economy, Hartwick rule is not applied because part of natural resource income consumed and genuine saving is negative. If the Hartwick rule would have been followed during the last few decades, Iranian economy would have been much less dependent on oil and other resources.

Keywords: Hartwick rule; Natural resource; PIM method; Genuine saving (search for similar items in EconPapers)
JEL-codes: N50 O13 Q26 (search for similar items in EconPapers)
Pages: 6 pages
Date: 2015-10
New Economics Papers: this item is included in nep-ara and nep-cwa
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Published in Proceedings of the Proceedings of the 19th International Academic Conference, Florence, Oct 2015, pages 292-297

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:2804577

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