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International trade, skill premium and endogenous labor division: The case of Mexico
, Article Labour Economics ; Volume 71 , 2021 ; 09275371 (ISSN) ; Sharif University of Technology
Elsevier B.V
2021
Abstract
Why trade liberalizations increase the skill premium? To explain this empirical evidence that is in contrast with the conventional theory of Heckscher-Ohlin, I build up a general equilibrium micro-founded heterogeneous-firm model of international trade where firms make decisions on their division of labor, and firms’ skill-intensities are endogenously determined. I show why the exporters are generally more productive and skill intensive and how trade cost reductions induce more productive firms to choose a higher degree of labor specialization, become more skill intensive and start to export. I further demonstrate how such internal horizontal organizational changes, after a trade cost...
Business cycle accounting of trade barriers in a small open economy
, Article Quarterly Review of Economics and Finance ; 2018 ; 10629769 (ISSN) ; Karimirad, A ; Rahmati, M. H ; Sharif University of Technology
Elsevier B.V
2018
Abstract
To what extent can a short-term decline in the output of a small open economy be explained by trade barriers? To answer this, we extend the Business Cycle Accounting method of Chari et al. (2007) to a small open economy model. We include an additional time-varying wedge to model financial trade frictions caused by barriers on imports. International sanctions on Iran provide an empirical opportunity to apply this method to data on Iran's recession in 2012-13. The results indicate that efficiency and investment wedges account for most of the fluctuations in aggregate variables during the sanctions, and trade barriers had little contemporaneous explanatory power. The effect of oil boycotts...
Business cycle accounting of trade barriers in a small open economy
, Article Quarterly Review of Economics and Finance ; Volume 71 , 2019 , Pages 67-78 ; 10629769 (ISSN) ; Karimirad, A ; Rahmati, M. H ; Sharif University of Technology
Elsevier B.V
2019
Abstract
To what extent can a short-term decline in the output of a small open economy be explained by trade barriers? To answer this, we extend the Business Cycle Accounting method of Chari et al. (2007) to a small open economy model. We include an additional time-varying wedge to model financial trade frictions caused by barriers on imports. International sanctions on Iran provide an empirical opportunity to apply this method to data on Iran's recession in 2012-13. The results indicate that efficiency and investment wedges account for most of the fluctuations in aggregate variables during the sanctions, and trade barriers had little contemporaneous explanatory power. The effect of oil boycotts...
Dynamic effects of trade barriers with speculation on foreign currency: The case of Iran
, Article International Economics ; Volume 167 , 2021 , Pages 151-173 ; 21107017 (ISSN) ; Ebrahimian, M ; Madanizadeh, S. A ; Sharif University of Technology
Elsevier B.V
2021
Abstract
This paper presents a small open economy, dynamic general equilibrium model with cash-in advance constraint and a currency attack to explain the dynamic effects of changes in trade barriers in the short and long run. The model is calibrated using data on macroeconomic variables in Iran's economy from 1990 to 2013 to identify and analyze the effects of barriers imposed on trade. We analyze the effects of counterfactual fiscal, monetary and exchange rate policies in response to trade barriers and show how the economy would respond in different time horizons. We also evaluate the effects of eliminating each of the factors causing this stagflation. Our findings show that the short-term drop in...
The impact of trade openness on labour force participation rate
, Article Applied Economics ; Volume 51, Issue 24 , 2019 , Pages 2654-2668 ; 00036846 (ISSN) ; Pilvar, H ; Sharif University of Technology
Routledge
2019
Abstract
In this article, we investigate the impact of trade openness on labour force participation rate. We use tariff rate as the main indicator of trade openness and we employ the number of regional trade agreements and the average tariff rate in the neighbours’ countries as instrumental variables to diminish the endogeneity problem of the tariff rate. We find that trade openness increases the participation rate which is economically and statistically significant. The results show that this correlation is robust under controlling for different variables and using various specifications. We find that 10 percentage point increase in tariff rate lowers the participation rate by 4–6 percentage point...
Signal detection using the correlation coefficient in fractal geometry
, Article IEEE 2007 Radar Conference, Waltham, MA, 17 April 2007 through 20 April 2007 ; 2007 , Pages 481-486 ; 1424402840 (ISBN); 9781424402847 (ISBN) ; Nayebi, M. M ; Sharif University of Technology
2007
Abstract
Using the Fractal Geometry in Signal processing has been extended nowadays [1]. They have found several applications in signal detection and recognitions. They use the chaotic feature of the noise and clutter and try to distinguish between the noise, clutter and the desired target [2] [3]. Recent works show that lots of clutters like sea and ground clutters have fractal behavior so this kind of approach to the signal detection has been extended these days[3][4]. In this paper we have used the Box-Counts of a signal rather than the Fractal dimension of a signal as will be defined later in the text. By applying the new defined concept we have developed different methods of signal detection. We...
Ride-hailing demand elasticity: a regression discontinuity method
, Article Journal of Industrial and Business Economics ; 2022 ; 03912078 (ISSN) ; Joshaghani, H ; Moradi, R ; Sharif University of Technology
Springer Science and Business Media Deutschland GmbH
2022
Abstract
Using the unique pricing method of Tapsi, the second-largest ride-hailing company in Iran, we estimate the price elasticity of demand for Tapsi rides. Tapsi mechanically divides Tehran, the largest city of Iran, into 256 regions using a 16 × 16 matrix of straight lines, to implement surge pricing in response to excess regional demand or supply. Surge multiplier works for all ride requests within each region, independent of supply and demand in neighboring regions or rides characteristics. We exploit this sharp discontinuity in pricing by running a regression discontinuity to estimate the causal effect of the price change on the number of ride requests, i.e., price elasticity of demand. Using...
Pricing Behavior Indicators and the Factors Affecting It: Evidence from Refah Stores’ Price Micro Data
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
Price stickiness which is measured by indicators like frequency and duration of price changes affects how monetary policy plays a role in economy. In fact, price stickiness determines how monetary policy affects economy’s real variables like output and unemployment. Hence, price stickiness is in favor of monetary policy since it provides the ability to improve real variables in the short term. Discovering the factors affecting price adjustment also allows the monetary policymaker to be able to predict changes in pricing behavior to some extent by monitoring the changes of these influential factors. This study seeks to answer several questions using 84 million monthly price observations of...
The Role of Oil Price Shocks in Bussiness Cycles of an Oil-Exporting Country: Facts from Iran with a General Equillibrium Approach
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
In this research, we develop a Real Business Cycle model for Iran, as Small Open Economy. In this model, which is designed to measure the role of oil price shocks in Iran’s business cycles, the positive oil price shocks, as well as increasing the revenue of exporting oil, raises the price of oil-based tradable goods. Additionally, it causes the fiscal policy variables (taxes and government expenditures) to change. Also the productivity of this economy is fluctuated by oil price fluctuations. The model is estimated via Impulse Response Function Matching method using a SVAR model as the auxiliary model. The results from the theoretical model show that near 50 percent of non-oil GDP cycles and...
The Interest Rate of “Transactional Loans” and Average Productivity of Capital in Iran’s Economy
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
In this research, I propose a macro-finance model with asymmetric information between firms and banks to investigate the capital misallocation effect of government interventions in financial markets of Iran’s economy, in terms of setting the price of “Transactional Loans”. In the presence of adverse selection, interest rate may be an instrument for screening lowproductive firms; however, the moral hazard problem of low productive firms with voluntary default, cancels out the filtering mechanism in high interest rates, if the cost of default for low-productive firms is low and judicial systems are poor in enforcing contracts. Hence, government repression/regulation policies do not affect the...
The Impact of the Complementarity of Factors of Production on the Welfare Gains from International Trade
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
To answer how large the welfare gains from international trade are, this thesis uses two main ideas: linkages and complementarity. A problem along the production chain can sharply reduce output under complementarity. In such a circumstance, international trade and importing in the sectors which are the weak links of the production chain, help solve this problem. Using a general equilibrium model, it is shown that, the complementarity of the intermediate goods assumption results in much higher welfare gains from international trade compared to similar international trade models which assume the substitutability of the intermediate goods
The Impact of Trade Openness on Labor Force Participation Rate
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
In this article we investigate the impact of trade openness on labor force participation rate. We use tariff rate as the main indicator of trade openness and we employ the number of regional trade agreements of neighbouring countries to diminish the endogeneity of the tariff rate variable. The results of the article show that the correlation of tariff rate and participation rate is negative and significant. Moreover, this correlation is robust controling for different variables and using various regression specifications. 1 percentage point decrease in tariff rate is correlated with 2-3 percentage point increase in participation rate and this relationship attenuates in the medium-run
Is Exporting Improve the Performance of Plant?« Evidence from Iranian Industrial Exporters»
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
The purpose of this research is compare some indicators of size, performance and productivity between exporter and non-exporter plants. For this purpose and, to answer questions of research we use from the industrial plants dataset (1382_1390). We obtain some stylized facts from the dataset then test evidence from data with econometric methods. In this dataset there are information about property, management, sales (domestic/foreign), inputs (domestic/foreign) and information about labor force, capital, investment of plant and many other variety information about plant. The results of my research show that always exporter in most measures of performance, size and productivity advantages...
Energy Price Increase and the Role of Monetary Policy and Financial Constraints: DSGE Approach
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
In this study, we aim to investigate the effects of energy price shocks on macroeconomic variables, particularly inflation. To achieve this goal, we have designed a Dynamic Stochastic General Equilibrium (DSGE) model with nominal rigidities and financial frictions. In this model, households and firms are energy consumers, and the government is the sole supplier of energy, selling it to households, firms, and the external world without energy constraints. The energy price in this model differs between firms and households, and we analyze the almost persistent shocks to both of these prices. Within the framework of this model, we analyze the role of monetary policy in controlling the...
Ride-hailing demand elasticity: a regression discontinuity method
, Article Journal of Industrial and Business Economics ; Volume 50, Issue 4 , 2023 , Pages 907-932 ; 03912078 (ISSN) ; Joshaghani, H ; Moradi, R ; Sharif University of Technology
Institute for Ionics
2023
Abstract
Using the unique pricing method of Tapsi, the second-largest ride-hailing company in Iran, we estimate the price elasticity of demand for Tapsi rides. Tapsi mechanically divides Tehran, the largest city of Iran, into 256 regions using a 16 × 16 matrix of straight lines, to implement surge pricing in response to excess regional demand or supply. Surge multiplier works for all ride requests within each region, independent of supply and demand in neighboring regions or rides characteristics. We exploit this sharp discontinuity in pricing by running a regression discontinuity to estimate the causal effect of the price change on the number of ride requests, i.e., price elasticity of demand. Using...
Energy Price Reform: A General Equilibrium Model
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
Using a micro-based general equilibrium model with four sectors, I introduce a context to study the macroeconomic effects of energy subsidies. I calibrate the model using Iranian energy data, estimating elasticities of substitution and energy shares. Using this calibration, I compare the steady-state results of two compensation plans for energy price reform, tax cuts and cash transfer, explaining the active mechanisms in each scenario and investigating their impact on household welfare and production levels. I calculate that the steady-state energy price in Iran is 40% of regional prices, and we simulate the reform in which prices are increased from this price to regional prices. I conclude...
An Empirical Investigation of the Welfare Gain from International Trade
,
M.Sc. Thesis
Sharif University of Technology
;
Madanizadeh, Ali
(Supervisor)
Abstract
The development of theoretical models in recent years emphasizes more and more the importance of intermediate goods in determining the welfare benefit of countries from international trade. In addition, due to the increase in computing power as well as the extent of international data, the experimental part has become an integral part of the research of this branch. In Ahmadi's thesis (1394), a multi-industry and multi-country general equilibrium model is presented by dividing the industries into two intermediate and consumption sectors based on the Caliendo and Parro (2014) model. In this model, a relationship has been obtained in terms of the basic parameters of the countries' industries,...
Trade in Intermediate Goods and The Welfare Gain from International Trade
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
In this thesis, I introduce a general equilibrium model of international trade that takes into account the industry linkages between intermediate goods and consumption goods producers to quantitatively measure the countries’ welfare gains and losses from different trade policies on intermediate and consumption goods. My model extends the inter-industry trade model of Ricardo (1817), intra-industry model of Krugman (1980), and firm heterogeneous model of Melitz (2003). Reduction of tariffs affect welfare of countries through direct effects on income, cost of export, and cost of input bundles of production (labor and intermediate goods), and indirectly through changes in term of trades, and...
Effect of Sanctions in Iran's 2013-2014 Recession: A Business Cycle Accounting Approach
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
We extend the work of Chari et al. (2007) to Iran’s economy institutions and introduce two additional wedges—the trade wedge and the oil wedge. The measured trade wedge value is regressed on nominal exchange rate, and thus we decompose the measured trade wedge into two components. One component represents the effect of nominal exchange rate on trade barriers and the other is representative of the effect of international sanctions in trade barriers. Then we evaluate the contribution of these two components of the trade wedge to the macroeconomic fluctuations in Iran from 2012 to 2014. Our results suggest that the trade wedge is crucial to account for the behavior of imported intermediate...
Estimating Income Elasticity of Household Energy Using the Quantile Regression Method
, M.Sc. Thesis Sharif University of Technology ; Madanizadeh, Ali (Supervisor)
Abstract
Abstract In this study, by using panel instrumental variable quantile regression method (IVQP) and household budget data during the years 2011-2018, income elasticity of Housing energy has been estimated at different levels of energy expenditure. This method helps to study the whole energy expenditure distribution instead of focusing on the average effects. The study results show that income elasticity has a downward trend with increasing energy consumption quantiles. In other words, households with higher consumption have less income elasticity, so that the income elasticity is estimated for 10, 90 percentage, 0.47, and 0.32 quantiles, respectively. Also, in another part of the research,...