Nematullah Yaqubi - PhD student in the field of urban economics, University of Isfahan
Zahra Mohammadi - Ph.D student in monetary and financial economics, IsfahanUniversity
Fatemeh Bagheri - Ph.D student in the field of economics in the public department ofIsfahan University

The rapid urbanization has posed numerous challenges for communities, among which thelimitation of public budgets stands out as a major obstacle to the development of sustainablesmart city projects. Consequently, the present study focuses on achieving sustainable smartcity infrastructure through collaborative financing involving both public and privatesectors. This research employs an analytical approach, utilizing the Dynamic StochasticGeneral Equilibrium (DSGE) model, which enables the evaluation of the four keyeconomic factors: households, businesses, government, and banks. By designingmathematical models, the study assesses the outcomes of this collaborative financingapproach. The findings indicate that the implementation of smart city initiatives positivelyimpacts all four variables. Household utility levels increase, long-term governmentexpenditures decrease due to enhanced productivity, and businesses experience increasedprofitability. Governments can facilitate urban infrastructure financing by engaging inpartnerships with the private sector, offering tax incentives, and providing a range of grantsand loans. Similarly, the private sector can benefit from participating in infrastructurefinancing through improved brand recognition, collaboration opportunities with localgovernments, sustainable return on investment, and access to government incentivesTheposition of the title in this section is ۱۲۰ mm from the top of the page or upper edge.

urbanization, sustainable smart city, macroeconomics, infrastructures