14.11.2018 New Publication in Review of Development Economics

Foto: Colourbox.de

A joint research by Mohammad Reza Farzanegan (CNMS) and Tim Krieger (University of Freiburg,) is now published in Review of Development Economics. The study is entitled “Oil booms and inequality in Iran”.

The authors study the response of income inequality to positive per capita oil and gas revenue shocks in Iran. Using historical data from 1973 to 2016 and vector autoregression (VAR) as well as vector error correction (VECM) model‐based impulse‐response functions, we find a positive and statistically significant response of income inequality to oil booms. They also explore possible channels through which oil booms may increase inequality, including private sector credit growth, construction investment, international trade (imports) and real economic output.

The analysis can help policymakers evaluate and accommodate the possible positive or negative effects of inequality in Iran resulting from the 2016 lifting of the embargo against the country.

For more details, see https://doi.org/10.1111/rode.12569

In addition, we can now publicly share a full-text view-only version of our paper via: https://rdcu.be/bbrEq