Evaluate The Effects Of Fiscal Policy On Iranian Economy In A Real Business Cycle Framework

Habit formation brings difficulties to the simultaneous study of business cycles.This article reviews the performance of habit formation and presents an externalhabit with non separability between consumption and leisure. We examine thegeneral model dynamics and then concentrate on the implications for consumptionandleisure-choices after a technology shock in such an economy, scrutinizing thecorresponding impulse-responses.Our main finding is that introducing habit formation into leisure in a model whichalready comprises habit formation in consumption smoothest leisure-choices, butonly has a very small influence on consumption-choices, let alone the othervariables. This may be seen as a justification of the fact that until now, habitformation in leisure has been neglected in economic theory. In this paper, build adynamic stochastic general equilibrium model for Iranian economy, is shown, theability to model the effects of fiscal policy analysis will have.

کلیدواژه ها:

Dynamic Stochastic General Equilibrium Model ، Calibration. JEL classification: C11 ، C22 ، E17 ، E32 ، E52