Abstract:
This study aimed to develop a multi
-
sector Dynamic Stochastic General Equilibrium
(L
arge DSGE) model for Iran’s economy. In this model, economy was divided into three
sectors: Agriculture, non
-
agriculture, and oil. Imports and exports were also included in
the model. In order to adapt the model with Iran’s economic conditions, price stick
iness
in agriculture and non
-
agriculture were included. Then, the impact of rising oil prices on
agricultural sector was examined. To calculate the required coefficients, 1971
-
2012 data
was gathered and Bayesian method was used. The results showed the nega
tive impacts of
rising oil prices on agriculture as well as the negative effects of Dutch Disease.
Keywords
: Agriculture, Bayesian, DSGE, Multi
-
sector, Oil prices, Stickiness.
