After the appearance offinancial crises in developing countries, there
has been a wide range of researches about the financial capacity of these
countries with respect to their debts. Though this subject has been a matter of argument for several decades, today it is one of the most contravertial . arguments in economic literature.
There are, in general, three factors which determine the income
capacity of the governments: degree of development, sectoral composition of GNP, and the degree of openness of economy. But there is not a common agreemant in their degree of effectiveness.
Later, other factors have been put to test, and with the help of
advanced econometrics models have been developed more seriously. In
spite of strategic importance of Iran and middle East area, still there has
not been an independent research in this issue, so, in this article we tried
to analyse the characteristics ofpublic income in Iran and factors affecting it.