Sharif Digital Repository

Producer-level data for Iranian manufacturing firms shows a large amount of dispersion and concentration in producer level sectoral shares, as well as a very strong relashionship between sectoral shares and markups. We Study the pro-competitive gain from trade in the Iran’s manufacturing sector. Domestic firms in Iranian manufacturing sector are protected via tarfiff and non-tariff barriers enforced by the government. In many sections of manufacturing sector, domestic firms feel little competition and charge high markups. The market power of domestic firms could be reduced by the reduction of tariff rate and increase in import share. As a result of foreign competition pressure, they would be... 

Our study investigates the real consequences of variations in the first and second moments of working capital requirement (WCR) in the presence of financial frictions. We introduce a theoretical link from imperfect information about WCR to firms’ performance. Firms choose non-prepaid factors of production with uncertainty about required prepayments, where their access to credit is constrained by collateral. After realization, firms with higher WCR may face financial constraints. This uncertainty influences their demand for inputs, albeit risk-neutrality. Unable to employ the projected level of prepaid input, constrained firms encounter capacity underutilization, leading to misallocation of... 

This study aims to investigate how different factors contribute to misallocation of physical capital in the Iranian economy. This is achieved by using a general equilibrium model with adjustment costs, uncertainty, and heterogeneity in firms' market power and technologies. In order to calculate the role of each factor in the observed misallocation, we need to estimate the parameters of this model using the Generalized Method of Moments. The data comes from the Annual Survey of Manufacturing Establishments from 2003 to 2013. According to the results, adjustment costs, heterogeneity in production functions, and heterogeneity in market power can explain about 80% of capital misallocation in... 

This research aims to explore the effectiveness of past tariff evolutions in shaping firms' response to current input prices. Additionally, it investigates how asymmetric fuel pricing across different industries influences overall industry efficiency and prosperity. Furthermore, the study examines the impact of fuel subsidies on the equilibrium distribution of companies independent of welfare decline. In Chapter 1, utilizing microdata from Iranian industrial workshops between 1386-1396 (2007-2017) A key finding is that new firms exhibit a significant and stronger reaction to energy price variations compared to other firms when it comes to technology choices.Chapter 2 presents a structural...