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The Effect of Inflation on Government Revenue and Expenditure: The Case of the Islamic Republic of Iran

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  • Abbas Alavirad
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    Abstract

    This paper provides an empirical analysis of the government budget deficit, money supply growth and inflation in the Islamic Republic of Iran. We use a simultaneous equation system to examine the effect of inflation on government revenue and expenditure, using quarterly data. Our major finding has been that the government budget deficit will increase in the inflationary condition. In addition, the deficit will increase money supply and this tends to increase inflation in Iran. Copyright 2003 Organization of the Petroleum Exporting Countries .

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    Bibliographic Info

    Article provided by Organization of the Petroleum Exporting Countries in its journal OPEC Review.

    Volume (Year): 27 (2003)
    Issue (Month): 4 (December)
    Pages: 331-341

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    Handle: RePEc:bla:opecrv:v:27:y:2003:i:4:p:331-341

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    Web page: http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN%291753-0237

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    Cited by:
    1. Magazzino, Cosimo, 2011. "The nexus between public expenditure and inflation in the Mediterranean countries," MPRA Paper 28493, University Library of Munich, Germany.
    2. Magazzino, Cosimo, 2010. "Public expenditure and revenue in Italy, 1862-1993," MPRA Paper 27308, University Library of Munich, Germany.

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