Journal of Economic Modeling Research

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Municipalities are kind of organizations that due to their diversity in functions and obligations play important roles in urban management .Financing the administration of obligations (urban public finance) is one of the principal tools in achieving targets and urban-related plans. With a glance at the structure of current revenue sources of this administration, it can be found that there is a considerable dependence on the revenue from building permits. This has inappropriate consequences for the economy of cities. Hence, providing an appropriate model that in addition to the quality of being operational and administrative has also the suitable properties can help both the local managements and city economies. To finance municipalities, specific criteria have been offered. In this study, in addition to classifying and grading the presented criteria, the current sources (revenue items) have also been graded, using multi-criteria decision making. And also the pattern of minimum expenditures supply has been modeled. The analysis of urban public finance in Isfahan and generally in Tehran shows that despite having the proper potentials in acquiring some revenues the urban management system relies heavily on building permit. In metropolitan areas, up to 50% of expenditure is obtained from building permit. This is not an appropriate financial strategy. Finally, we suggest that municipality should finance all of its expenditures through tax on pollution and fuel, consumption tax and property tax.

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One of the important targets of the economic planning is economic growth via enhancement of the labor productivity. In this regard, education expenditures play a crucial role. This study aims at investigating the effect of education expenditures on the level of human capital and economic growth through a computable general equilibrium approach. The data on economic variables and social accounting matrix belongs to the year 2001. Three scenarios on education expenditures are defined and their effect on human capital and economic growth are estimated. The results show that education expenditures have positive effects on economic growth and human capital. A 50% increase in education expenditures in the first period causes 3.81 and 5.8 percent increase in human capital and economic growth respectively. In the second period, the same increase in education expenditures affects human capital and economic growth positively by 5.4 and 7.3 percent respectively. Although separating the economic growth into human and physical factors in the first period shows that there is no relationship between human capital and economic growth, but in second period this separation causes a relationship between the two factors.

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In Islamic and conventional banks, there may always be differences in efficiency, cost gap ratio and credit risk; Therefore, the purpose of this study was to investigate the relationship between credit risk, cost gap ratio and efficiency of banks in selected Islamic and conventional countries. For this purpose, credit risk, efficiency and cost gap ratio were calculated for 50 Islamic banks and 50 non-Islamic (conventional) banks during the years 2013-2019 and regard, the results of the t-test showed that the credit risk, inefficiency and cost gap ratio are higher in Islamic banks than conventional banks. Also, the results of the Granger causality test showed that there is a bidirectional causality relationship between inefficiency and credit risk. But this relationship is a little weak. There is no causal relationship between credit risk and cost gap ratio, and there is a strong two-way causality relationship between inefficiency and cost gap ratio. The results in Islamic banks are almost similar to all banks. However, in Islamic banks, credit risk is not the Grangerian cause of inefficiency. Also, the significance level of other causal relationships is much higher. For conventional banks, there is no causal relationship between inefficiency and credit risk. There is no causal relationship between credit risk and cost gap ratio, and there is a two-way causality relationship between inefficiency and cost gap ratio. In addition, the results of variance analysis indicate that the cost gap and inefficiency have a close relationship with each other and their effectiveness is high. Credit risk also has a more or less effect on inefficiency during future periods. In Islamic banks, the effects of inefficiency and cost gap on credit risk are slightly higher. But the inefficiency of the cost gap has a high effectiveness. In conventional banks, credit risk has the same effectiveness as Islamic banks, but its effectiveness is somewhat less. Also, inefficiency has less effects than the cost gap. The cost gap, like Islamic banks, has a high effectiveness of inefficiency, and this effectiveness decreases over time.