Reviewing the Impact of Monetary Policy on Income Distribution in Iran Using Genetic Algorithms (GA) and Particle Swarm Optimization Algorithm (PSO)

Nooshin Karimi Alavijeh, Sorour Chehrazi Madreseh and Sayyed Jalaee

International Journal of Management, Accounting and Economics, 2017, vol. 4, issue 7, 682-691

Abstract: Inequality in income distribution is the source of injustices such as class differences based on wealth, incomes, and consumption among members of society. Achieving fair distribution of income requires the proper use of economic instruments among which monetary policy is the most important tool. In this study, using annual data from 1979-2013, the effects of liquidity volume (monetary policy index) on inequality of income distribution (using Gini coefficient inequality index) have been addressed. Therefore, Gini coefficient function was estimated with particle swarm optimization algorithm and genetic algorithm. And based on performance assessment criteria, the model with particle swarm optimization algorithm was chosen to study the impact of monetary policy on income distribution in Iran. Research results show that the relation of liquidity volume variable with direct income distribution and the relation of government expenses with income distribution are significant and indirect. Also, the results show that by increasing human development index, income inequality in society increases and rising inflation reduces inequality of income distribution.

Keywords: Monetary Policy; Income Distribution; Genetic Algorithm; Particle Swarm Optimization Algorithm; Gini coefficient (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ijmae.com/article_115033_5c1b482b15355cd8137299a3394dd1b6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:air:journl:v:4:y:2017:i:7:p:682

DOI: 10.5281/zenodo.17519760

Access Statistics for this article

More articles in International Journal of Management, Accounting and Economics from International Journal of Management, Accounting and Economics
Bibliographic data for series maintained by Dr. Behzad Hassannezhad Kashani ().