Analyzing of Oil Revenues Shocks Asymmetric Effects on Misery index in Iran Using Vector Error Correction Model
Azad Khanzadi (),
Sara Moradi () and
Maryam Heidarian ()
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Azad Khanzadi: Assistant Professor of Economics, Razi University
Sara Moradi: M.A. in Economics, Razi University
Maryam Heidarian: M.A. in Energy Economics, Razi University
Quarterly Journal of Applied Theories of Economics, 2017, vol. 3, issue 4, 129-152
Since the major part of oil revenues are control by government and it forms government’s expenditures; therefore, recognition of oil revenues growth shocks and their impacts intensity on macroeconomic variables such as inflation and unemployment is very important for economic policymakers. This study examines the asymmetric effects of oil revenues shocks on misery index in Iran’s economy by using vector error correction method. For this purpose, we use annual macroeconomic data during 1971-2014 periods. The result shows that both positive and negative shocks have a significant and negative effect on misery index and also long-term trend in oil revenues have a positive and significant relationship with misery index. On the other hand, population growth rate, government expenditure and trade openness index as well as influencing variables on misery index in the model were brought that have a positive and significant relationship with misery index. Also according to the Wald test results, the hypothesis of symmetric effects of positive and negative shocks of oil revenues is rejected.
Keywords: Oil revenues shocks; Resource curse; Asymmetric effects; Misery index; Iran (search for similar items in EconPapers)
JEL-codes: C20 H27 Q34 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qjatoe:0061
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