Convergence of Misery Index in Selected Countries of 1404 Development Perspective Document of Iran: Nahar and Inder Approach

Document Type : Scientific paper

Authors

1 Assistant Professor of Agricultural Economics, University of Tehran, Tehran, Iran.

2 Ph.D. in Economics, University of Tabriz, Tabriz, Iran.

Abstract

The 1404 development perspective document of Iran, as one of the upstream documents, has been explained the path to the comprehensive of development. One of the dimensions of this document is the economic dimension of development. Also, the misery index is one of the most important economic components. In this regard, the purpose of this paper is to study the convergence of the misery index in the selected countries of the 1404 development perspective document. For this purpose, Nahar and Inder convergence has been used and the study period is 1997-2017. The results of the study indicate that Bahrain, Saudi Arabia, Turkey, Kuwait and Jordan are convergent, and countries of Egypt and Gaza are divergent towards the average of the misery index. Also, the misery index in Bahrain, Qatar, Saudi Arabia, and Kuwait has always been below the average of countries. Also, Iran is the only country that has always been in a worse situation than the average of countries. Therefore, to achieve the goals of development and to bridge the gap between the indicators of misery among the elected countries of the document, the goals of reducing inflation and unemployment must be seriously addressed by policy makers and economic planners.

Keywords

References

Abbasinejad, H., & Kazemizadeh, R. (2003), Analysis of Phillips Curve and Determination of Natural Rate of Unemployment in Iran (2003). Journal of Economic Research. 37(2), 133-160. [In Persian]
Beja, E. (2014). Measuring Economic Ill-Being: Evidence for the Philippine Misery Index. Department of Economics, Ateneo de Manila University, Quezon City, Philippines 1108, Mpra Paper.
Blanchflower, D. G., Bell, D. N. F., Montagnoli, A., & Moro, M. (2013). The Effects of Macroeconomic Shocks on Well-Being (Working Paper). Hanover, NH: Department of Economics, Dartmouth College.
Bulut, H., Kaya, P., & Kocak, E. (2015). Testing Convergence of Return on Assets: Empirical Evidence from the Turkish Banking Sector. Journal of International and Global Economic Studies, 8(2): 40-48.
Cohen, I.K., Ferretti, F., & McIntosh, Bryan (2014). Decomposing the Misery Index: A Dynamic Approach. Cogent Economics & Finance, 2: 1-8.
Cuestas, J. C., Monfort, M. & Ordonez, J. (2015). Unemployment Convergence in central and Eastern European Countries: Driving Forces and Cluster Behavior. Emerging Markets Finance and Trade, 51(1): 259-273.
Dadgar, Y. & Nazari, R. (2018). The Impact of Economic Growth and Good Governance on Misery Index in Iranian Economy. European Journal of Law Economics, 45: 175–193.
Devarajan, S, Swaroop, V., & Zou, H. (1997). The Composition of Public Expenditure and Economic Performance. Journal of Monetary Economics, P 37.
Haghjou, N. (2002). Social Welfare and Development (Review of the Functions of Some Sponsors in Iran). Social Welfare, 2(6), 75-96. [In Persian]
Karanasos, M., Koutroumpis, P., Karavias, Y., Kartsaklas, A., & Arakelian, V. (2016). Inflation Convergence in the EMU. Journal of Empirical Finance, 39: 241-253.
Lean, H. H. & Tang, C. F. (2009). New Evidence from the Misery Index in the Crime Function. Economics Letters, 102, 112–115.
Lechman, E. (2009). Okun`s and Barro`s Misery Index as an Alternative Poverty Assessment Tool. Recent estimations for European countries. MPRA Paper No. 37493.
Mirjalili, S. H. & Bozorgi, R. (2018). Measuring Economic Resilience Index in Iran (2005-2014). Journal of Iran's Economics Essays. 15(29), 69-94. [In Persian]
Nahar, S., & Inder, B. (2002). Testing Convergence in Economic Growth for OECD Countries. Applied Economics, 34(16): 2011-2022.
Nessen, R. (2008). Arthur Okun Father of the Misery Index. Washington, DC: Opinion - The Brookings Institution.
Pourebadollahan Kovich, M., Fallahi, F., & Azari, Z. (2017). Investigation of Factors Affecting on Price Level Convergence among the Iran’s Provinces. Iranian Journal of Trade Studies. 21(82), 153-176. [In Persian]
Shiller, R. J. (1997). Why Do People Dislike Inflation? In christana D. Romer & D. H. Romer, eds. Reducing Inflation: Motivation and Strategy. Chicago: University of Chicago press: 1-15.
Tang C. F. & Lean, H. H. (2009), New Evidence from the Misery Index in the Crime Functions, Economics Letters, 102: 112-115.
Vafaei, E., Mohammadzadeh, P. & Fallahi, F. (2019). The Analysis of Social Welfare and Welfare Convergence in The Iran,s Provinces for Evalution of Iran,s Regional Development, Journal of Economical Modeling, 12(43), 1-23. [In Persian]
Vafaei, E., Mohammadzadeh, F. & Asgharpour, H. (2017). The Convergence of Social Welfare in the Iranian Provinces Using Spatial STAR Nonlinear Technique. Journal of Applied Theories of Economics, 4(2), 79-102. [In Persian]
Macroeconomics Research Letter
Volume 14, Issue 27
November 2019
Pages 149-173

Files

History

  • Receive Date: 17 February 2019
  • Revise Date: 15 May 2019
  • Accept Date: 25 May 2019

Share

How to cite

Statistics