Effects of Oil Price Shocks on Agricultural Sector Using Dynamic Stochastic General Equilibrium Model
نویسندگان
1 Department of Agriculture Economics, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Islamic Republic of Iran.
2 Department of Agriculture Economics, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Islamic Republic of Iran.
3 Institute Trade Studies and Research, Ferdowsi University of Mashhad, Mashhad, Islamic Republic of Iran.
4 Faculty of Economic, Allameh Tabataba'i University, Tehran, Islamic Republic of Iran.
doi
چکیده
This study aimed to develop a multi-sector Dynamic Stochastic General Equilibrium (Large DSGE) model for Iran’s economy. In this model, economy was divided into three sectors: Agriculture, non-agriculture, and oil. Imports and exports were also included in the model. In order to adapt the model with Iran’s economic conditions, price stickiness in agriculture and non-agriculture were included. Then, the impact of rising oil prices on agricultural sector was examined. To calculate the required coefficients, 1971-2012 data was gathered and Bayesian method was used. The results showed the negative impacts of rising oil prices on agriculture as well as the negative effects of Dutch Disease.
