University of Tehran Journal of Economic Research (Tahghighat- E- Eghtesadi) 0039-8969 49 4 2014 12 22 Test of Time inconsistency of Iran’s Economy Test of Time inconsistency of Iran’s Economy 699 727 53177 10.22059/jte.2014.53177 FA Iman Bastanifar Assistant Professor, University of Isfahan, Department of Administrative Science and Economics, Faculty of Economics Journal Article 2014 03 04 Time inconsistency is the situation: A decision-maker's preferences<br /> ( planner or an agent) change over time. Kydlnd and Prescott) 2004( , declares that the reason of stagflation in the 1970s is due to time inconsistency caused by discretionary government intervention<br />In this paper, we introduce the phenomenon of time inconsistency, focusing on fiscal policy . To test this phenomenon, the long-run Phillips curve و time series data for the years 1979 to 2009 and the method of ordinary least squares (OLS) , Augmented Dicky Fuler test of Unit root , vectors based on regression (VAR) have been used, locus Crises , recursive and rolling regression is applied. The results show that, Iranian economy is suffering from the phenomenon of time inconsistency, because of government’s fiscal intervention. Time inconsistency is the situation: A decision-maker's preferences<br /> ( planner or an agent) change over time. Kydlnd and Prescott) 2004( , declares that the reason of stagflation in the 1970s is due to time inconsistency caused by discretionary government intervention<br />In this paper, we introduce the phenomenon of time inconsistency, focusing on fiscal policy . To test this phenomenon, the long-run Phillips curve و time series data for the years 1979 to 2009 and the method of ordinary least squares (OLS) , Augmented Dicky Fuler test of Unit root , vectors based on regression (VAR) have been used, locus Crises , recursive and rolling regression is applied. The results show that, Iranian economy is suffering from the phenomenon of time inconsistency, because of government’s fiscal intervention. https://jte.ut.ac.ir/article_53177_0b470371b6a56e74da80edde8dee1606.pdf