(Translated by https://www.hiragana.jp/)
The Effect of Political Management and Economic Stability on Speculation in Iran's Economy
IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0334.html
   My bibliography  Save this article

The Effect of Political Management and Economic Stability on Speculation in Iran's Economy

Author

Listed:
  • Mostafazade, Mohammad

    (PhD Student, Faculty of Economic and Political Sciences, Shahid Beheshti University)

  • Davoodi, Parviz

    (Professor, Faculty of Economic and Political Sciences, Shahid Beheshti University)

  • Samsami, Hossein

    (Assistant Professor, Faculty of Economic and Political Sciences, Shahid Beheshti University)

  • Arabmazar, Aliakbar

    (Professor, Faculty of Economic and Political Sciences, Shahid Beheshti University)

Abstract

Speculation and speculative behaviors leave widespread and often destructive effects on the economy. Speculation, on the one hand, strengthens the unproductive part of the economy and, on the other hand, causes undesirable phenomena such as social dissatisfaction, inequality, inflation, etc. Therefore, the correct and efficient economic policies require control over the influential speculation factors. In this research from 1991 to 2022, a multi-stage quantitative method based on econometric models has to be used. Therefore, the indicators of Speculation, economic instability, and political management were first created using the principal component analysis method. Then, the factors affecting Speculation were estimated using the auto-regressive distributed lag. According to the research results, political management hurts Speculation, and by improving the political management index by one unit, the speculation index decreased by approximately 1.052%. Regarding the economic instability index, it is concluded that its effect on Speculation is positive in the long term, and the impact coefficient is estimated to be more than 0.96. In other words, the increase in economic instability leads to the creation of speculative opportunities and increases in Speculation. In the long term, by creating an atmosphere of uncertainty, the opportunities for rent increase in transactions to earn more profit, and thus, market transactions and speculations increase. In the long term, by creating an atmosphere of uncertainty, the opportunities for rent increase in transactions to earn more profit, and thus, market transactions and speculations increase

Suggested Citation

  • Mostafazade, Mohammad & Davoodi, Parviz & Samsami, Hossein & Arabmazar, Aliakbar, 2024. "The Effect of Political Management and Economic Stability on Speculation in Iran's Economy," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 11(1), pages 175-206, June.
    • Handle: RePEc:ris:qjatoe:0334
    as

    Download full text from publisher

    File URL: https://ecoj.tabrizu.ac.ir/article_18001_baabc22db271847208cb57a5543bd148.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Political Management; Economic Stability; Good Governance; Unproductive Economy;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sakineh Sojoodi (email available below). General contact details of provider: https://edirc.repec.org/data/fetabir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.