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:: Volume 5, Issue 20 (quarterly journal of Fiscal and Economic Policies 2018) ::
3 2018, 5(20): 77-95 Back to browse issues page
Non-linear relationship between poverty and the size of the government in the Iranian economy: using a threshold regression method
Ebrahim Zare Mr , Hashem Zare Dr
PhD Student Department of Economic, Faculty of Economic and Management, Shiraz Branch, Islamic Azad University,
Abstract:   (581 Views)

Since government duties and goals have been tended toward welfare and supportive duties over the time, the poverty and role of the government in the reduction it has been the attractive research issue for specialists and policy-makers in developed and developing societies. In this line, we hypothesized that there is a nonlinear relationship between poverty and the size of the government in Iran. The influential factors on extreme poverty are determined by using the threshold regression method. The results show that the size of the government has a threshold effect on extreme poverty. The estimated threshold is about 5.21 percent. In other words, if the size of the government is smaller than the threshold, the size has a negative and insignificant effect on the extreme poverty. In another side, the size of the government has a positive and significant effect on extreme poverty if the size of government is larger than the threshold

Keywords: government size, Absolute poverty, threshold regression
Full-Text [PDF 842 kb]   (124 Downloads)    
Type of Study: Research | Subject: Special
Received: 2017/07/4 | Accepted: 2018/03/7 | Published: 2018/03/7
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Zare E, Zare H. Non-linear relationship between poverty and the size of the government in the Iranian economy: using a threshold regression method. 3. 2018; 5 (20) :77-95
URL: http://qjfep.ir/article-1-670-en.html


Volume 5, Issue 20 (quarterly journal of Fiscal and Economic Policies 2018) Back to browse issues page
فصلنامه سیاستهای مالی و اقتصادی Quarterly Journal of Fiscal and Economic Policies
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