Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Money and Inflation in Iran: Vector Auto-Regression (VAR) Approach 3 29 FA Ali Taiebnia taiebnia@ut.ac.ir Y Saeed Taghimollaee saeed.tmollaee@yahoo.com N Iran has suffered from high and fluctuating rates of inflation within the last decades. This paper tries to empirically analyze inflation in Iran and find its main factors through Cointegration approach and Vector Error Correction Model (VECM) during the last two decades. The findings of the research indicate that monetary variables are the most important factors in explaining inflectional process in Iran. In addition to liquidity volume, the roles that foreign exchange rates and imports inflation play are to be noted in inflation in the long run. Although the impact of imports on inflation is reductive, the imports inflation affects inflation fluctuations in the long run. Moreover, the results of testing the monetary theory show that this theory could not fully explain inflectional process in Iran. The changes of money volume in Iran have been mostly under the influence of the government’s financial activities and according to the estimations of this paper money-inflation relationship is not proportional. The findings of the research indicate that the causality relationship in this process is from ‘money’ to ‘inflation’. In fact, the money volume is the cause of the inflation, and not its effect. Keywords: Inflation, Monetary Policy, Budget Deficit, Cointegration Approach http://eprj.ir/article-1-73-en.html http://eprj.ir/article-1-73-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 An Analysis of the Interaction between Development Economics and Ethics 31 53 FA Mahmoud Motavaseli motavaselim@yahoo.com Y Hamid Padash padash@ut.ac.ir N Economists you usually believe in distinction between economics and ethics. While ethical issues are embedded in economic phenomena, and they are a source of their explanations which have so far been neglected. This neglect is more evident in development economics than other branches of economics. This paper tries to indicate that “ethics” is a related matter in economic issues, especially in development economics. The analysis of three ethical areas, i.e. values, economic reforms and inequality - which play role in economic development - show that ethical problems are not easy to tackle in Development Economics. Development ethics was introduced to address the ethical problems in development economics though seemingly economists’ updated analytical tools do not suffice and they are required to interact with philosophers of “ethics”. Development Economics, Mainstream Economics, Ethics, Development Ethics http://eprj.ir/article-1-74-en.html http://eprj.ir/article-1-74-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Cost Efficiency and the Substitutional ;Complementary Cost Factors Elasticities in Iranian Banking System 55 77 FA Naser Khiabani n.khiabani@imps.ac.ir Y mehdi Hamidisahneh mehdi.sahneh@gmail.com N This paper aims at investigating the efficiency of Irans banking system from the standpoint of cost-efficiency as well as the substitutional and complementary cost factor elasticities. A translog cost function was estimated using panel data from Iran’s banking sector for the years of 2002 to 2007. Factor elasticties, as well as a measurement of the cost efficiency using free distribution approach (FDA) are derived from the translog cost function and factor demand system. Our findings show that there is a reverse relationship between the cost efficiency and the size of banks (based on banks asset). The results of substitutional and complementary cost factor elasticities calculations are also indicative of the human resources-deposits complementary relationship as well as of physical capital substitution with deposits in Iranian banking system. Meanwhile, human recourses and physical capital are less substitutable to each other than physical capital with deposits. Banking Efficiency, Cost Efficiency, Factor Elasticities, Free Distribution Approach (FDA) http://eprj.ir/article-1-75-en.html http://eprj.ir/article-1-75-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Factors Affecting the Effectiveness of Performance Budgeting System in Public Organizations 79 98 FA Adel Azar Azar@modares.ac.ir Y Amir Vafaei Amir_vafaei226@yahoo.com N Performance budgeting is one of the modern budgeting methods. Plenty of researches have so far been conducted on the benefits and goals of such budgeting system. A review of the literature related to performance budgeting shows that despite all beneficial advantages and results expected from executing performance budgeting, this system would not lead to its expectation if it is not effectively executed. Reviewing the related literature and conducted researches indicates that some factors affect performance budgeting effectiveness. Identifying such factors and paying attention to them is useful for fulfilling the goals and benefits of this method. This study tries to use the related literature to extract the factors affecting performance budgeting. Two models affecting the performance budgeting effectiveness are as follows: a model for affecting factors before execution and another model for factors during execution are both analyzed by the viewpoints of the experts and LISREL software. According to the results, three factors, namely ability, authority for executing performance budgeting and acceptance are some of the factors affecting performance budgeting before executing it and intra-organizational communication quality and allocation by performance are some factors affecting this budgeting system while executing it. Performance Budgeting, Effectiveness, Structural Equations, Ability, Authority http://eprj.ir/article-1-76-en.html http://eprj.ir/article-1-76-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Assessment of Development Planning Method in Iran (1989-2009) 99 127 FA SSeyyed Ehsan Khandouzi smkhandoozi@gmail.com Y This paper tries to evaluate Iran’s development planning method during the 1989-2009 with the aim of formulating some strategies to stay away from previous unsuccessful experiences. In other words the researcher has in mind the improvement of development planning method though he does not intend to propose any prescriptive base or content for the development plans. To this end, the paper reviews contemporary approaches to development and macro-scale planning methods then it examines planning experiences in Iran and over the world especially after the Islamic Revolution in order to identify strengths and weaknesses of Iran’s development plans. This survey asserts there are four types of content-related and procedural challenges in the path to accomplish development plans in Iran. This paper advises that while Islamic-Iranian development model is still being formulated, it would be better to uses institutional approach as it better considers the political, cultural and legal aspects of societies. In the end, the paper discusses solutions of the mentioned problem in the leading development planning methods. Planning, Iran’s Economy, Development, Institutions, Economic History http://eprj.ir/article-1-77-en.html http://eprj.ir/article-1-77-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 129 134 FA http://eprj.ir/article-1-78-en.html http://eprj.ir/article-1-78-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Critical Analysis of the Application of Contemporary Global Development Indicators 135 190 FA Seyyed Mojtaba Emami smemami@gmail.com Y Masoud Banafi mbanafi@gmail.com N Seyyed Alireza Sajjadieh ar.sajadieh@gmail.com N Development is a sort of intervention in the social systems to improve them. Because of high complexity of the social systems, it is considered an extreme intricate knowledge of our era to conduct, control and direct such systems. So far, various approaches have been formulated and executed in order to intervene in these systems but unfortunately the government and political and academic elites in Iran, as other so-called developing or under-developed countries have little used these scientific findings. Thus, either they are passive or take a uniform reaction when they encounter the strategies resulted from theses sciences applied by so-called developed countries. One of the most efficient and easiest strategies for managing and intervening social systems, including development, is to evaluate and control the indicators. This paper surveys the international organizations that design such indicators and reviews four contemporary viewpoints on the indicators in order to study their backgrounds. Moreover, scrutinizing chronological trend of development indicators and studying the uniform reactions of Iran’s development elites to them not only inform us on the designing mechanism of the indicators, as a hidden tool of globalization, but they also lead us to a hyperactive and influential action to finalize and manage the advancement and justice plans. Hence, the researcher has in mind a new view on design and application of the indicators. Economic Growth Indicators, Economic Development Indicators, Sustainable Development Indicators, Human Development Indicators, Globalization, Advancement and Justice Indicators Design, Advancement and Justice, International Organizations http://eprj.ir/article-1-79-en.html http://eprj.ir/article-1-79-en.PDF

Institute for Management and Planning studies 3115-7092 3115-7106 15 1 2010 4 1 Analyzing the Impact of Board Characteristics on the Capital Structure of the Corporations Accepted in Tehran Stock Exchange 191 204 FA Amir Rasaiian a.rasaiian@umz.ac.ir Y The basic philosophy behind creating a corporate leadership system is representation issues or the conflict of interests between the directors and shareholders. A number of mechanisms have been considered in the financial literature to reduce the problems of representation one of the outstanding mechanisms is the corporate leadership system. This paper studies the relationship between some board characteristics, as one of the mechanisms of the corporate leadership, and the corporate capital structures. Therefore, 90 corporations accepted in Tehran Stock Exchange within 2002-2008 were selected as statistical sample. This research studies the size of board of directors, managing director’s dual responsibility, the percentage of board’s out-of-duty directors as ‘independent variables’ and debt ratio (capital structure criterion) as ‘dependent variable’. A multi-variable regression model was fitted using compositional data with the aim of testing the hypothesis. The results show that debt amount is increased in the corporations in which the functions of board chairman and managing director are not separated as well as in the corporations with less number of board members. There is no significant relationship between out-of-duty directors ratio and capital structure. Corporate Leadership System, Capital Structure, Compositional Data, Board of Directors’ Out-of-duty Members, Financial Lever http://eprj.ir/article-1-80-en.html http://eprj.ir/article-1-80-en.PDF