University of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10074FAJournal Article19700101In order to extend our understanding of neoclassical school of thought this paper focuses on the utility doctrine of Stanley Jevons. More specifically, in an effort to investigate the underlying axioms of this doctrine, our paper concentrates on ethical, philosophical and methodological aspects of “the mechanics of utility and self-interest”. The paper argues that Jevons combines the “utility” doctrine of Jeremy Bentham with the economic man of Adam Smith to develop his doctrine. This research discusses how Smith’s philosophy of ethics enabled Jevons to solve the inconsistency of the utility theory of Bentham when applied to economics. It is argued that this inconsistency mainly arises from the conflict between private and social interests. In order to bypass the criticism arising from this conflict, Jevons used Smith’s theory to propose that the social benefit can be achieved when a selfish individual peruses his own interest. Moreover, the paper studies the economic method advocated by Jevons and shows how the ratification of this method is the least satisfactory part of his doctrine. The paper concludes that using mathematics, as a major tool in Jevons’s doctrine is a natural byproduct of maximization principle and utilitarian approach. Finally, it suggests that one should take into consideration the limitations of Jevons’s doctrine before using it as an analytical tool in economics.In order to extend our understanding of neoclassical school of thought this paper focuses on the utility doctrine of Stanley Jevons. More specifically, in an effort to investigate the underlying axioms of this doctrine, our paper concentrates on ethical, philosophical and methodological aspects of “the mechanics of utility and self-interest”. The paper argues that Jevons combines the “utility” doctrine of Jeremy Bentham with the economic man of Adam Smith to develop his doctrine. This research discusses how Smith’s philosophy of ethics enabled Jevons to solve the inconsistency of the utility theory of Bentham when applied to economics. It is argued that this inconsistency mainly arises from the conflict between private and social interests. In order to bypass the criticism arising from this conflict, Jevons used Smith’s theory to propose that the social benefit can be achieved when a selfish individual peruses his own interest. Moreover, the paper studies the economic method advocated by Jevons and shows how the ratification of this method is the least satisfactory part of his doctrine. The paper concludes that using mathematics, as a major tool in Jevons’s doctrine is a natural byproduct of maximization principle and utilitarian approach. Finally, it suggests that one should take into consideration the limitations of Jevons’s doctrine before using it as an analytical tool in economics.https://jte.ut.ac.ir/article_10074_0935d0c8d4a523f7f815a3919d9d9f58.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10075FAJournal Article19700101Human capital and its role in the progress of production have been in the core of attention to the economic literature. Additionally, human capital not only increases numbers of skilled and trained labors, which can lead to a higher rate of productivity, but also provides grater opportunities of economic growth and development.
The present paper thus evaluates the effect of promoting higher education on Iran’s manufacturing export supply.
To this end, a simultaneous equation system including both endogenous and exogenous variables, particularly higher education as an exogenous variable, is specified in order to make a systematic and theory-based relationship between such variables. Each equation of the model is then estimated by applying the weighted two stage least squares (W2SLS) method over the period 1966 — 1999, to examine the impact of higher education promotion on Iran’s non-oil exports.
Overall, estimation results obtained look reliable, so that they represent statistically expected significance of equation coefficients available in the system. According to the results obtained, a scenario of 20 percent increase in the value of higher education variable (normally in the form of the ratio of all higher educated employees to total employees in the manufacturing sector) is conducted, and then the relevant model is simulated by the analytic Newton Method. The results reveal an increase of about 16 percent per annum on average in manufacturing exports. The implication is that the conduction of such policy on Iranian export sector can expand structurally its related market.Human capital and its role in the progress of production have been in the core of attention to the economic literature. Additionally, human capital not only increases numbers of skilled and trained labors, which can lead to a higher rate of productivity, but also provides grater opportunities of economic growth and development.
The present paper thus evaluates the effect of promoting higher education on Iran’s manufacturing export supply.
To this end, a simultaneous equation system including both endogenous and exogenous variables, particularly higher education as an exogenous variable, is specified in order to make a systematic and theory-based relationship between such variables. Each equation of the model is then estimated by applying the weighted two stage least squares (W2SLS) method over the period 1966 — 1999, to examine the impact of higher education promotion on Iran’s non-oil exports.
Overall, estimation results obtained look reliable, so that they represent statistically expected significance of equation coefficients available in the system. According to the results obtained, a scenario of 20 percent increase in the value of higher education variable (normally in the form of the ratio of all higher educated employees to total employees in the manufacturing sector) is conducted, and then the relevant model is simulated by the analytic Newton Method. The results reveal an increase of about 16 percent per annum on average in manufacturing exports. The implication is that the conduction of such policy on Iranian export sector can expand structurally its related market.https://jte.ut.ac.ir/article_10075_03c1705553f03ee4e57e37462686eac2.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10076FAJournal Article19700101The purpose of this paper is to see the effects of including a banking sector in the Lucas (2000) model. As Lucas, we have also used McCallum and Good friend's (1979) “Shopping Time Model (STM)”, in which the fundamental assumption is that consumption requires time spent shopping (or transacting) and transaction time may decrease by holding a greater amount of real balance.
In our model inflation can impose welfare cost by two distorting channels: first, during inflationary period households intend to decrease their non interest-bearing money, in order to reduce the impacts of inflation. Therefore, their benefits from the so-called liquidity services of money to facilitate transactions will be declined. In other words, inflation makes them allocate more resources in transaction time and less in producing consumption goods. To explain the second channel, it should be said, inflation may increase demand for banking services to economize transaction time. Therefore, the scarce resources are transferred to the banking sector. These resources can be considered as a social loss. The reason is, if inflation were lower the resources could be used directly in order to increase consumption goods.
The result of introducing new channel to estimate welfare cost of inflation shows that by extending Lucas model the welfare cost of inflation could be measured more precisely.The purpose of this paper is to see the effects of including a banking sector in the Lucas (2000) model. As Lucas, we have also used McCallum and Good friend's (1979) “Shopping Time Model (STM)”, in which the fundamental assumption is that consumption requires time spent shopping (or transacting) and transaction time may decrease by holding a greater amount of real balance.
In our model inflation can impose welfare cost by two distorting channels: first, during inflationary period households intend to decrease their non interest-bearing money, in order to reduce the impacts of inflation. Therefore, their benefits from the so-called liquidity services of money to facilitate transactions will be declined. In other words, inflation makes them allocate more resources in transaction time and less in producing consumption goods. To explain the second channel, it should be said, inflation may increase demand for banking services to economize transaction time. Therefore, the scarce resources are transferred to the banking sector. These resources can be considered as a social loss. The reason is, if inflation were lower the resources could be used directly in order to increase consumption goods.
The result of introducing new channel to estimate welfare cost of inflation shows that by extending Lucas model the welfare cost of inflation could be measured more precisely.https://jte.ut.ac.ir/article_10076_bdbc7e4640dadc3c23314bc9faa4783a.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10077FAJournal Article19700101This paper attempts through a Comparative analysis of the economic effects of Zakah and inflationary finance to clarify the effects of imposition of these two kinds of taxes on growth, inflation and welfare.
The approach of present article is merely theoretical one. Through considering the Zakah literature, the proposed (selected) theory is presented. The findings of this research show that the imposition of Zakah on inactive properties while disregarding on bank deposits can lead to improvement and rise in investment and economic growth, whereas the effects of the inflation tax on growth are negligible.
Direct relationship between inflationary finance and the rate of inflation is obvious while Zakah in one hand is considered as an automatic economic stabilizer, and in other hard it causes the flow of revenues from the rich to the poor and actually it shows a system of reallocation of resources. The teaching of the Islamic principles explain the positive welfare effects of Zakah for both Zakah payers and receivers in contrast to the negative welfare effects of inflationary finance through disturbance on payments system and reduction in real stock of money is strongly understood and distinguished.This paper attempts through a Comparative analysis of the economic effects of Zakah and inflationary finance to clarify the effects of imposition of these two kinds of taxes on growth, inflation and welfare.
The approach of present article is merely theoretical one. Through considering the Zakah literature, the proposed (selected) theory is presented. The findings of this research show that the imposition of Zakah on inactive properties while disregarding on bank deposits can lead to improvement and rise in investment and economic growth, whereas the effects of the inflation tax on growth are negligible.
Direct relationship between inflationary finance and the rate of inflation is obvious while Zakah in one hand is considered as an automatic economic stabilizer, and in other hard it causes the flow of revenues from the rich to the poor and actually it shows a system of reallocation of resources. The teaching of the Islamic principles explain the positive welfare effects of Zakah for both Zakah payers and receivers in contrast to the negative welfare effects of inflationary finance through disturbance on payments system and reduction in real stock of money is strongly understood and distinguished.https://jte.ut.ac.ir/article_10077_15d56857c9559a32da6c864dea9b7a90.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10078FAJournal Article19700101https://jte.ut.ac.ir/article_10078_dea3c7cf096d7121f7c8db0d5b9d7aeb.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10079FAJournal Article19700101A system dynamics approach is presented in this paper to study the long-term effects of Iranian State policies to support agricultural section and gain self-sufficiency (SS) of products. Agriculture is studied as one section of the whole national economy. The self- sufficiency index is defined in terms of the ability of the economy to domestically answer the demand for food. Policies such as controlled exchange rate and fixed prices have important effects on production and export of foods. These policies are taken to support consumers and producers against high prices, to increase the SS index and the nutrition rate. In the model presented, the aim is to measure variables like export, ICOR index, the ratio of investment to surplus, and SS index against counter policies such as equilibrium prices and floating exchange rates in long term. It is shown that recommended policies to activate the whole economy are equally effective in this special section.A system dynamics approach is presented in this paper to study the long-term effects of Iranian State policies to support agricultural section and gain self-sufficiency (SS) of products. Agriculture is studied as one section of the whole national economy. The self- sufficiency index is defined in terms of the ability of the economy to domestically answer the demand for food. Policies such as controlled exchange rate and fixed prices have important effects on production and export of foods. These policies are taken to support consumers and producers against high prices, to increase the SS index and the nutrition rate. In the model presented, the aim is to measure variables like export, ICOR index, the ratio of investment to surplus, and SS index against counter policies such as equilibrium prices and floating exchange rates in long term. It is shown that recommended policies to activate the whole economy are equally effective in this special section.https://jte.ut.ac.ir/article_10079_89e181aeaa0ddc87db97949870e66b44.pdfUniversity of TehranJournal of Economic Research (Tahghighat- E- Eghtesadi)0039-896939120040320--10080FAJournal Article19700101This paper aims to explore relationship between population growth environmental pollution and economic growth in Iran. In this article, we use Hsiao causality test to identify this relationship. In addition, we contribute to this debate analyzing the trends of annual Data from
1978-2001. This relationship for Population Growth and Environmental Impact is from Population Growth to Environmental Impact. There is a bidirectional causality between economic growth and environmental economic. In other words, increase in GDP per capita exerts positive effects on environmental impact and vice versa.This paper aims to explore relationship between population growth environmental pollution and economic growth in Iran. In this article, we use Hsiao causality test to identify this relationship. In addition, we contribute to this debate analyzing the trends of annual Data from
1978-2001. This relationship for Population Growth and Environmental Impact is from Population Growth to Environmental Impact. There is a bidirectional causality between economic growth and environmental economic. In other words, increase in GDP per capita exerts positive effects on environmental impact and vice versa.https://jte.ut.ac.ir/article_10080_50b0bf58b4086ab99fc005460c45aaf2.pdf