Study and Comparison the Incidence of Dutch Disease in Iranian Economy in Two Periods of Oil Shock

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Momeni, Atefeh Sadat | 2015

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 47439 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): nili, Masoud; Madanizadeh, Ali
Abstract:
This paper studies and compares the effect of "Dutch disease" in Iranian economy in two periods of rising oil price (1973-1978) and (2004-2010). The study presents a DSGE model to analysis the behavior of economic variable in both periods and to address this question that whether or not policy maker has learning behavior. The model consists of households, final goods producers who divided in tradable goods and non-tradable goods sector and the government. I use calibration methods to estimate models parameters.Comparison of simulated results and the actual macroeconomic variables in Iran during 1338-1390 indicates that, first of all Dutch disease effect occur in both periods of oil shock so there is no learning in policymaker behavior, and also The impulse-response functions indicate that, price of non-tradable goods increase relative to the price of tradable goods .then comparison of two periods shows that the demand of tradable sector in 2004-2010 period become weaker than in 1970s
Keywords:
Dutch Disease ; Dynamic Stochastic General Equilibrium ; Oil Price Shocks ; Tradable Sector ; Non-Tradable Sector

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