On the Welfare Cost of Inflation in a New Keynesian Model with a Cash-in-advance Constraint: The Case of Iran
Publish place: Iranian Economic Review Journal، Vol: 23، Issue: 3
Publish Year: 1398
نوع سند: مقاله ژورنالی
زبان: English
View: 62
This Paper With 21 Page And PDF Format Ready To Download
- Certificate
- من نویسنده این مقاله هستم
استخراج به نرم افزارهای پژوهشی:
شناسه ملی سند علمی:
JR_IER-23-3_011
تاریخ نمایه سازی: 21 مهر 1402
Abstract:
T he welfare cost of inflation in a new Keynesian model has been studied in this article. Nominal prices and wages are subjected to Rotenberg's adjustments in the benchmark model. In addition, this study uses the CIA model to compare the welfare cost of seigniorage tax and consumption tax. The model is calibrated for the Iranian economy and the results of the calibration are as following: In a steady state, a seigniorage tax imposes higher costs on social welfare rather than consumption taxes. We also find that the welfare cost of inflation increases linearly with the inflation rate and the welfare cost in a model without the government is higher than the model with government expenditures. Numerically, in the benchmark model, an annual inflation rate of ۱۰% entails a welfare cost (relative to a -۱.۵% annual inflation rate, the Friedman Rule’s level of inflation rate) of ۱.۶۹% of a steady state consumption without a government. If we add the government to the model, this cost will be ۱.۲۸%. This amount will be only ۰.۵% if we use the RBC model. According to Ascra's measurement (۲۰۰۹), inflation tax increases welfare costs, but consumption tax decreases welfare costs.
Keywords:
Authors
Abbas HoseiniGhafar
Department of Economics, University of Isfahan, Isfahan, Iran
Rasul Bakhshi Dastjerdi
Department of Economics, University of Isfahan, Isfahan, Iran
Majid Sameti
Department of Economics, University of Isfahan, Isfahan, Iran
Hoshang Shajari
Department of Economics, University of Isfahan, Isfahan, Iran
مراجع و منابع این Paper:
لیست زیر مراجع و منابع استفاده شده در این Paper را نمایش می دهد. این مراجع به صورت کاملا ماشینی و بر اساس هوش مصنوعی استخراج شده اند و لذا ممکن است دارای اشکالاتی باشند که به مرور زمان دقت استخراج این محتوا افزایش می یابد. مراجعی که مقالات مربوط به آنها در سیویلیکا نمایه شده و پیدا شده اند، به خود Paper لینک شده اند :