Oil Price Pass-Through into Domestic Inflation: The Case of Iran

Oil Price Pass-Through into Domestic Inflation: The Case of Iran

Review of economic developments in Iran over the past four decades shows that oil revenues have deep and wide impact on economic indicators. The Two channels which oil price changes directly or indirectly affect inflation as the most important Economic variables are: increase in demand (mainly by government public budget and Influencing the components of monetary base and money supply) and increase in production costs (via the price of factors of production). In this regard, the present paper attempts to investigate the nature and causes of oil price pass-through into inflation in the short-and-long term; analysis of the pass-through and in addition design the necessary policies to control its destructive consequences. For this purpose, the Dynamic Error Correction Model was used and the data were collected monthly from 2003/3 to 2013/3. The findings showed that the oil price pass-through into inflation in both short-and-long term were Positive and incomplete. Therefore, it would be useful in policymaking.
International Journal of Energy Economics and Policy-Cover
  • Başlangıç: 2011
  • Yayıncı: İlhan ÖZTÜRK
Sayıdaki Diğer Makaleler

Renewable Energy and Economic Growth: Evidence from the Sign of Panel Long-Run Causality

Nicholas APERGİS, Dan Constantin DANULETİU

International Energy Security Indicators and Turkey’s Energy Security Risk Score

Gelengul KOCASLAN

Analysis of the Energy Market Operator Activity in Eight European Countries

France KRİŽANİČ, Zan Jan OPLOTNİK

Strategic Alliance in Energy Sector & Implications for Economic Growth and Technical Efficiency: The Case of Petrobras and Galp

Jomar Patricia De Avila ARROYO, Milton YAGO, Muhammad Ali NASİR, Junjie WU

A Descriptive Analysis of Public Understanding and Attitudes of Renewable Energy Resources towards Energy Access and Development in Nigeria

Yusuf Opeyemi AKİNWALE, İbikunle Olalekan OGUNDARİ, Oluwatosin Eniola ILEVBARE, Adeyemi Oluwaseun ADEPOJU

Economical Considerations on CCS System for Geological Uncertainty and Injection Failure

Haruhiro SUZUKİ, Amin YOUSEFİ-SAHZABİ, Yuichi SUGAİ, Hossein YOUSEFİ, Kyuro SASAKİ

A Panel VAR Approach of the Relationship among Economic Growth, CO2 Emissions, and Energy Use in the ASEAN-6 Countries

Cosimo MAGAZZİNO

Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks

Bilal MEHMOOD, Syed Hassan RAZA, Mahwish RANA, Huma SOHAİB, Muhammad Azhar KHAN

Electricity Demand in a Northern Mexico Metropolitan Economy

Thomas M. FULLERTON, Ericka C. MÉNDEZ-CARRİLLO, Adam G. WALKE

Oil Price Pass-Through into Domestic Inflation: The Case of Iran

Abbas Ali ABOUNOORİ, Rafik NAZARİAN, Ashkan AMİRİ