Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Types of the exchange rate fluctuations Risks and theirs management practices: Theoretical Principles and review in the experiences of countries 3 34 FA Bahram Sahabi Tarbiat Modares University Mehdi Zolfaghari Tarbiat Modares University Nader Mehregan Bu-Ali Sina University Alireza Sarang Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran In the finance literature, the exchange rate fluctuations risk (ERFR) considered as one of the major systematically risks. Indeed uncertainty of Exchange rate fluctuations for each firm is deemed as the risk (uncertainty) that could affect on the firm's activities financial flows. So managing this risk is considered as one of the most important functions of financial managers of enterprises. According to the over exchange rate fluctuations in the past years and the damage it has arrived on many domestic enterprises, it is necessary that ERFR be identified and the strategies for its management be discussed. So the present study described and introduced the theoretical principles of ERFR and was discussed the experience of foreign companies in the face of risk and its management. The results showed that ERFR effect on firms' economic activity through the three main channels includes: conversion, transaction and economic risk. In this regard, foreign companies use the various tools especially operational and financial hedging to cover each risk. By given the diversity of the risk management tools and existent of platforms in order to implement them, the local companies can use them by identify and assess these risks.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 The Main Determinants of Exports in Developing Countries: An Econometric Bayesian Approach 35 64 FA Alireza Kazerooni Tabriz University Sima Nasibparast Tabriz University The main objective of this study is to investigate the major determinants of exports in developing countries over 2006-2012 using the econometric approach of Bayesian Model Averaging. According to the empirical results of the study, the degree of openness and ratio of gross domestic saving to GDP are key factors in explaining exports in these countries. The impact of other variables such as import tariffs and duties, the number of internet users, and the rate of inflation also have been relatively important. In addition, the results indicate that the share of agriculture in economic activities has a negative impact on exports with a probability of 32%, while the share of industry has a positive but insignificant effect on exports. The study concluded that the variables related to communication facilities (the number of mobile subscribers and Internet users) have positive effects on exports. According to the results, it seems that some policy actions should be taken to reduce inflation rate, enhance education system, allocate more efficiency labor forces among different economic sectors, and implement a reasonable proportionality among different indirect taxes. Central Banks of the countries under study also should take some appropriate foreign exchange policies in order to expand exports.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Study of the Effects of Realizing the P rice of Energy Carriers on Interfactor and Interfuel Substitution in Iran 65 86 FA Abstract One of the important issues related to the production and use of inputs, is the Study of the possibility of substitution between inputs. Substitution of energy with other inputs due to its special features such as, finitude, abundance and the accrue of subsidies to energy carriers in Iran, is important. The main purpose of the present paper, is the Study of the effects of Realizing the price of energy carriers on interfactor or interfuel substitution in Iran. To do the Study, using the translog cost function and shfard lemma, first, factor and energy carriers share equations were calculated and then the effects of Realizing the price of energy carriers on interfactor or interfuel substitution within of the johansen – juselius cointegration test in the long run were estimated. The main results suggest is that the Realizing the price of energy causes that the Complementaring labor with energy. That can be said in the its explanation, the labor productivity isn’t so high in Iran, that it can reduce energy consumption through replacement energy. In other words, with available technologies the actualizing the price of energy carriers lead to Complementaring labor with energy and reducing energy consumption will increase unemployment. Realizing the price of energy lead to the weak substitution between the energy and capital. Also, because gas is a cleaner and modern fuel than kerosene, be is substitution kerosene. Electricity replace for coal because the electricity is a cleaner and modern fuel than coal and its consumption increases with technology.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Modeling nonlinear effects of government spending and its financing resources on GDP: Smooth Transition Regression Model 87 108 FA دانشگاه آزاد واحد ارومیه This study investigates the impacts on government spending and its financing resources including tax revenues, oil revenues and government debts on GDP in Iran during 1350 to 1387 period. For this regards, Smooth Transition Regression (STR) model has been employed. The results show that, there is a significant nonlinear relationship among government spending and its financing resources and GDP with respect to inflation as a transition variable. The STR estimation results show that, threshold value of inflation is 14.8 percent and smoothing parameter is equal to 10. Based on the results, in first regime where inflation is lower than threshold value, government spending, tax revenues, oil revenues, government debts and inflation have positive, negative, negative, positive and positive effects on GDP, respectively. In second regime, where inflation is higher than threshold value, the maintained variables have negative, positive, positive negative and negative effects on GDP. All the estimated coefficients of model are significant. The results of robustness check tests also indicate on enough validity of STR model in order to fit the maintained relationship. These results emphasis on inflation control and necessarily of reduction the government dependence on oil revenues and banking debts.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Need for pecking order financing for innovation in Firm:A Case Study of Financing Innovation system in Iran 109 146 FA Roohallah Aboojafari Technology Study Institute Shaban Elahi Tarbiat Modares University Adel Paighami Imam Sadiq University Kazem Yavari Tarbiat Modares University Today, knowledge and innovation as one of the most important factors of economic growth and development is very important. In this way the various factor are effective for innovation that most important of them is finance which should provide at the right time, enough amount and correct method for the firms. Set the correct mechanism for financing innovation in the financial system requires a suitable framework for policy in this area. For this we review financial system and economics of information and incentive literature with emphasis on pecking order theory and financial growth cycle model to provide appropriate framework for financing innovative firm based on theories and model. Then, using a case study strategy based on reports from organizations and experts interview that framework used for analyzing finance of innovation in Iran. The results show that the Iranian financial system does not fully and effectively in all aspects of financial policy, financial markets, financial instruments and financial institutions sensitive to the innovation development and these institutions financing criteria does not match with requirements to develop innovation.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Behavioral Economics And Public policy 147 182 FA Mainstream economics is based on some assumptions and axioms which enable its theories and models to analyze the surrounding events in the simplest possible form. However, analyzing these assumptions and axioms demonstrates that many of them and their suggested models are baseless in the real world or in terms of the experimental studies. It has made the mainstream economics approach very vulnerable against different criticisms and has convinced many economists to revise substantially all general and ideological frameworks of this kind of economics and to offer alternative approaches. In this light, behavioral economics is an alternative approach for this. Accordingly, while providing a succinct review on the main approaches in policy-making in the field of economy, this paper underlines the axioms necessary for defining the general policies based on the behavioral economic approach, including heuristic decision-making, the importance of social behaviors, the importance of belief, etc. It also emphasizes the fact that policy-making models in economics are more complex and extensive than what is considered in the mainstream models.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Inflation and Reduction of Social Capital in Iran 183 214 FA Hoda zobeiri university of Mazandaran Sahand Ebrahimi pour faez university of Mazandaran Inflation is a most important variable in macroeconomic, which lead to social abnormalities and reduction of social capital, apart from affecting different economic sectors. As social capital is a necessary condition of economic development, the purpose of this paper is to investigate the effect of inflation on social capital in Iran during 1345 to 1385. To do so, in first step, the effect of inflation on social capital has estimated through Levenberg – Marquardt fitting algorithm. Then in second step, the effect of inflation on social capital along with policy variables (fiscal and monetary policies) has been estimated using vector autoregressive model. The results indicates that inflation have negative and significant effect on Iran’s Social capital during the considered period.

Institute for Management and Planning studies 2251-9092 19 4 2014 10 1 Poverty reduction strategies, institutional economics approach 215 242 FA Mojtaba Ghafari Definition of poverty, nowadays, has gone beyond income poverty and extended to categories such as lack of access to education and health, equal opportunities, privation of social and individual capabilities, including the lack of political and social freedom, Lack of enjoyment of participation in social institutions, violation of civil rights. Inequality and poverty reduction strategies have also been broadened reciprocally, in recent years, besides the direct policies of reduction of poverty and Public services, other solutions to reduce inequality and poverty have been proposed. In this regard, institutional perspective offers new approaches for reduction of inequality and poverty . In this article, with a brief review of the three approaches, institutional strategies for reducing inequality and poverty are presented.