سید حسین میرجلیلی

In the decade of 1979-1988, there was no development plan in Iran. During 1989-2022, six development plans implemented in Iran’s economy. The assessment of development plans conducted based on the performance and the results of economic indicators over the period. Economic Growth over the course of development plans was volatile. There has been a double-digit inflation rate over the course of the development plans and Productivity and the distribution of income indices were volatile. The challenges of planning in Iran include lack of common understanding on basic concepts of development plans, challenges of comprehensive plan, essential change due to external shocks, time span, parallel initiatives, coordination failure and lack of independent evaluation entity.

In this study we examined output gap in the Iranian economy. The main question of the study is that how much is seasonal output gap in Iranian Economy and which factor affects gap variation. The other question is that whether using HP-F as a statistical based method for estimating output gap, provide different result than using SVAR as theory based method. Accordingly the aim of study is to estimate potential output and thus output gap using two method and analysis of the result. We used two methods (Hodrick-Prescott Filter and SVAR) to estimate quarterly output gap for the period 1988:1-2008:4. The results pointed out that the estimation is not sensitive to the method and there is a close relation between oil revenue and output gap. In the period of 1998:3-1999:3, when oil price reduced to $11.45 per barrel, Iranian economy faced with a recession and it affected on output gap with a lag. Output gap increased from 34818 in 2004:1-76782 million dollars in 2008: 4. The comparison of estimated output gap and changes of oil price in different periods point out the positive relation. According to the estimations of output gap, output gap in the Iranian Economy has intense fluctuation due to the effects of oil proceeds fluctuations. In some years, actual output is more than potential output, that is, output gap is positive and so this situation can be an important reason for inflation in that period and policy maker must do plans and policies for control of inflation and in some years, actual output is less than potential output and this means output gap was negative. This situation is a reason for unemployment in these years and therefore policy makers must do expansionary policies.