Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 Banks Money Creation and the Transmission Mechanism of Shocks 3 44 FA Mohammadreshad Esfahani Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran reshad.esfahani74@sharif.edu N Amineh Mahmoudzadeh Department of Economics, Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran mahmoodzadeh@sharif.edu Y 0000-0002-1651-6429 Seyyed Ali Madanizadeh Department of Economics, Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran madanizadeh@sharif.edu N 10.61186/jpbud.28.2.3 This paper investigates the implications of bank money creation by developing a New Keynesian model that incorporates price rigidity and financial frictions but without real rigidities. Banks play a dual role as intermediaries of loanable funds and creators of credit. Their unique ability to create credit stems from the acceptance of their liabilities as a medium of exchange by economic agents. While the microeconomics of banking literature has addressed this function as liquidity transformation, there is a lack of macro-level analysis on this topic. We compare our baseline model with two alternative models: one featuring banks solely as intermediaries of loanable funds and another based on deposit multiplier models. Our model demonstrates that when banks have access to investment deposits held by households, their money-creation power predominantly affects nominal variables in the economy. Money Creation, Transmission Mechanism, Credit Creation, Money Multiplier, Financial Intermediation. http://eprj.ir/article-1-2217-en.html http://eprj.ir/article-1-2217-en.pdf

Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 External Shocks, Cost Push and Stagflation in Iran 45 89 FA Seyyed Ahmad Reza Jalali Naeini Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran a.jalali@imps.ac.ir Y Shahbod Seighalani Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran, N 10.61186/jpbud.28.2.45 Two major sources of inflationary forces in Iran's economy during the past three decades have been the exchange rate depreciation and soaring imported goods prices, and the imbalance between the nominal scale of the economy and its production capacity. In the period of 2012-2022, the main cause for exchange rate depreciation and the most important driver of cost upsurge was the international sanctions. In this period, the demand-side policies, specifically monetary policy, were reactive and could not restrain inflationary pressures emanating from the foreign shocks. In contrast, during the period 2001-2011, fiscal and monetary expansions led to aggregate demand expansion, however, due to the stability of the exchange rate and the supply chains, inflation remained relatively in check over the medium run. The stability of the nominal exchange rate also increased the demand for Rial as a financial asset thereby absorbing growth in M2. The average annual growth rate of M2 in the decade of sanctions (2012-2022) was two and a half percent higher than the previous decade, but the average annual inflation rate was nearly fourteen percent higher. After re-imposition of sanctions by the USA in 1998, the average annual inflation rate rose to above 42% and remained significantly higher than the long-term trend. According to the findings of this paper, the difference in output and inflation during the last two decades can be attributed to the occurrence of external shocks and their impact on the cost of production and on the supply chain. Inflationary Stagnation, Monetary Policy, DSGE Model, cost push inflation, Exchange Rate, Iran. http://eprj.ir/article-1-2227-en.html http://eprj.ir/article-1-2227-en.pdf

Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 Output Multiplier of Iran\'s Economic Sectors: Input-Output Analysis and Network Theory Approach 91 114 FA Esfandiar Jahangard Department of Economics, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran jahangard@atu.ac.ir N 0000-0002-8370-7081 Jamal Kakaie Planning and Budget Organization, Tehran, Iran. jamal.kakaie@gmail.com Y 0000-0003-3765-2005 Afsaneh Sherkat Allameh Tabataba’i University, Tehran, Iran. N 0000-0001-8667-0635 Najmeh Sajedianfard Faculty of Economics, Management, and Social Sciences, Shiraz University, Shiraz, Iran. s.sajedian@rose.shirazu.ac.ir N 0000-0002-3190-3013 10.61186/jpbud.28.2.91 The structure of production networks determines the macroeconomic responses to sectorial shocks. Accordingly, key sectors are instrumental in transmitting supply and demand-side shocks. This article applies the methodology proposed by Savoie (2017) and network theory and implements the input-output tables of the Central Bank of Iran in 1988, 1993, 1999, 2004, 2010, and 2016 to examine the output multipliers of Iran's economic sectors. This article also compares the results based on Savoie's (2017) method with the driven results according to Friedkin's (1991) and Monize et al.'s (2008) methodology. The latter identifies key sectors using three centrality measures: total effect, immediate effect, and mediate effect. The results show that the "industry", "water, electricity, gas", and the "transportation and inventory" sectors have always had the highest connections with other sectors, and also have had the highest output multiplier. Besides, the "industry" and the "ICT" sectors are detected as the key and the developing sectors in Iran's economy, respectively. In addition, based on Friedkin's (1991) and Monize et al.'s (2008) methodology, the "construction" and "other services" sectors can foster Iran's economic growth; even though based on Savoie's (2017) methodology, these sectors relatively had a lower output multiplier. Productivity, Input-Output, Output Multiplier, Network Theory, Key Sectors http://eprj.ir/article-1-2213-en.html http://eprj.ir/article-1-2213-en.pdf

Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 Evaluating the Impact of Economic-Institutional-Energy Variables on the Ecological Footprint: The Application of the Panel Quantile Regression Model in Selected Countries of the MENA Region 115 154 FA Mohammad Sayadi Department of Economics, Faculty of Economics, Kharazmi University Tehran, Tehran, Iran m.sayadi@khu.ac.ir N 0003-0003-2731-9233 Siab Mamipour Department of Economics, Faculty of Economics, Kharazmi University Tehran, Tehran, Iran, s.mamipoor@khu.ac.ir N Maryam Galavi Department of Economics, Faculty of Economics, Kharazmi University Tehran, Tehran, Iran. N 0009-0007-0986-2909 Ebrahim Ghaed Department of Economics, Faculty of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad, Iran Ebrahimghaed@mail.um.ac.ir Y 0000-0003-2113-8378 10.61186/jpbud.28.2.115 The main purpose of this study is to investigate the effect of economic indicators, institutional quality and energy efficiency on the ecological footprint (as an indicator to evaluate the degree of environmental degradation). For this purpose, the annual data of 15 MENA countries (Middle East and North Africa) for the period from 1990 to 2021 have been used with the quantile panel approach. The quantile panel model provides the possibility of investigating the effect of research variables on the ecological footprint during different quantiles. The findings indicate the effect of the coefficients of the variables on the ecological footprint in accordance with the expected theoretical foundations; In such a way that the gross domestic product per capita, the ratio of foreign direct investment, and the degree of urbanization and political instability have a positive and significant effect on the ecological footprint, while the index of trade openness, corruption control, the index of democracy, and energy efficiency have a negative and significant effect on the ecological footprint. This effect has not been constant in different quantiles; In such a way that the effect of the variables of GDP per capita, energy efficiency, foreign direct investment ratio, degree of urbanization, and political instability in the high quantiles is far more than the low quantiles, and the effect of the variables of trade openness index, control Corruption and democracy index in low quantiles are more than in high quantiles. Ecological Footprint, Panel Quantile Regression Model, Institutional Quality, Energy Efficiency, Mena Region http://eprj.ir/article-1-2190-en.html http://eprj.ir/article-1-2190-en.pdf

Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 Designing an Efficient and Incentive-Compatible Mechanism of Self-Adjusting in the Provincial ‎Income-Expenditure System 155 188 FA Omidali Parsa Faculty of Management and Economic, Science and Research Branch, Islamic Azad University, Tehran, Iran. parsa_omid_ali@yahoo.com Y Farhad Ghaffari Faculty of Management and Economic, Science and Research Branch, Islamic Azad University, Tehran, Iran. ghaffari@srbiau.ac.ir N Farhad Dejpasand Department of Economics, Faculty of Economics, Shahid Beheshti University, Tehran, Iran. N 10.61186/jpbud.28.2.155 Mechanism design theory is the art of designing and guaranteeing a set of political and ‎motivational rules in the interaction environment which, by creating the necessary and sufficient ‎internal motivation in the agents, coordinates their behaviors in such a way that simultaneously realizes the ‎individual goals and interests of the agents, and also the collective results desired by the policymakers and ‎planners. This research aims to design efficient and incentive-compatible mechanisms of self-regulation in the ‎income-expenditure system of the provinces, to concurrently maximize the incentive to ‎collect provincial public revenues and reduce provincial imbalances. The library method, in the form of ‎studying the existing laws and regulations, and documents, was used to collect data and information for ‎‎2022, and were analyzed in accordance with the approach of mechanism design theory. The findings of the ‎present study show that by creating a complete and guaranteed dependence between the expression ‎and collection of provincial public revenues with the amount of allocation of credits for the ‎acquisition of provincial capital assets, and also the restoration of other provincial spending credits ‎and the acquisition of capital assets, sufficient internal motivation in the provinces can be created. Such informed motivation maximizes the province's income and credit and realizes the provincial ‎balances so that in the first year of implementation, at least 100 Hemats (thousand billion Rials) will ‎be added to the country's general income in addition to the usual process. Efficient and Incentive-Compatible Mechanisms of Self-Regulation, Allocation ‎Efficiency, Provincial Public Revenues, Other Provincial Spending Credits, Credits for the Acquisition ‎of Provincial Capital Asset http://eprj.ir/article-1-2215-en.html http://eprj.ir/article-1-2215-en.pdf

Institute for Management and Planning studies 3115-7092 3115-7106 28 2 2023 9 1 Behavioural Bias of Legal Clients of Stock Exchange Investors in the Banking Industry 189 213 FA Hamid Reza Rohi Moghadam Department of Accounting and Financial Management, Faculty of Humanities, Islamic Azad University, Qom Branch, Iran N Ebrahim Abbasi Department of Management, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran. abbasiebrahim2000@alzahra.ac.ir Y Mohammad Kashanipour Department of Accounting, Faculty of Management and Accounting, College of Farabi, University of Tehran, Tehran, Iran. kashanipour@ut.ac.ir N Mohammad Reza Pourfakharan Department of Accounting, Faculty of Humanities, Qom Branch, Islamic Azad University, Qom, Iran. N 10.61186/jpbud.28.2.189 12 public and private banks are currently present in the stock exchange market in the “bank and credit institution” group. This study examines the behavioral bias of legal clients of stock exchange investors according to the literature on the behavioral finance. The grounded theory approach has been used to examine the patterns of behavioral bias of legal clients. The research data are the narratives of the participants (legal clients of stock market investors) for 2021. Nineteen people were selected using the purpose-based sampling method, and their narratives were collected through semi-structured interviews and coded by MaxQda software and analyzed in three stages. The findings of the study have shown that institutional investor behavioral bias is formed on social, emotional and psychological bias platforms, whose drivers are social factors, market, knowledge and experience, and psychological factors. To reduce the impact of behavioral bias, strategies for portfolio diversification strategies, investment strategies, investment analysis, and the use of information, are used which in turn result in improved capital market efficiency and investor success. Furthermore, the strategies are influenced, on the one hand, by cultural, political and economic factors, and on the other hand by the financial characteristics of the company, the policy of the company, and the institutional characteristics.   Behavioural Finance, Behavioural Bias of Investors, Behavioural Bias Resources, Legal Investors http://eprj.ir/article-1-2220-en.html http://eprj.ir/article-1-2220-en.pdf