Reviwing and Estimation of Business Cycles in Iran

Abstract

In this paper, authors, reviewing business cycles nature and numerous outlooks concerning “raison de etre” there of, provide a model together with its estimated using VAR for the years 1959-2006. The results show that monetary and fiscal factors may affect economic fluctuations. It seems that fiscal policies have been more effective in creating business cycles. Meanwhile, there are other factors, which somehow are related to economic structure of Iran, play a significant role in economic crises within Iran’s economy.