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A New Approach to Compare the Impact of Direct and Indirect Payments on Regional Macroeconomic Indices

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  • Nooraddin Sharify

    (Assistant Professor of Economics Planning, Mazandaran University, Iran.)

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    Abstract

    Several procedures have been employed to examine the impacts of subsidies on different indices in an economy. This paper proposes a new approach enabling one to compare direct and indirect payments on households. To this end, the impact of government payments is examined on Gross Regional Products, Employment, Income Distribution and Inflation of Golestan Province in Iran through a Social Accounting Matrix for the year 1993-94. The advantage of this approach is its ability to compare the impact of direct payments and indirect one on the above indices in more detail. The results indicate that direct payments lead to inflation with more influence on comparison with indirect payments.

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    File URL: ftp://80.66.179.253/eut/journl/20071-11.pdf
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    Bibliographic Info

    Article provided by Economics faculty of Tehran university in its journal Iranian Economic Review.

    Volume (Year): 12 (2007)
    Issue (Month): 1 (winter)
    Pages: 193-211

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    Handle: RePEc:eut:journl:v:12:y:2007:i:1:p:193

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    Postal: P.O. Box 14155-6445, Postal Code 14114, Tehran
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    Web page: http://economics.ut.ac.ir/
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    Keywords: Social Accounting Matrix - Direct payments - indirect payments - Iran - Golestan Province;

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    1. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-73, December.
    2. Siebe, Thomas, 1995. "Taxes and subsidies in a multisectoral econometric model," Economic Modelling, Elsevier, vol. 12(2), pages 193-204, April.
    3. Frank Walsh, 1999. "Labour Market Rents and Irish Industrial Policy," The Economic and Social Review, Economic and Social Studies, vol. 30(4), pages 363-380.
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