Document Type : Research Paper

Author

Assistant Professor of Economics, Department of Economics, Payame Noor University, Tehran

Abstract

Inflation uncertainty is one of the important economic variables which affects macroeconomic variables including growth and production. So, the aim of this research is to study inflation rate uncertainty and its short and long run effects on the sport production during the years 1991-2017. On the other hand, the study population was Iran and we used the ARCH and GARCH model to obtain inflation uncertainty and Johansen Juselius cointegration test to determine the long run relationship among variables. The model was estimated using autoregressive distributed lag method. The eviews 10 was used to analyze data. The results show that inflation uncertainty has a negative small effect on sport production in the short run and a negative larger effect in the long run. In addition, government sport expenditures both in the short run and in the long run have had the most impact on the sport production compared with other variables, consistently with expectations. This shows the high importance of fiscal policy in the sport sector and policy makers should pay more attention to it. The liquidity variable has also had a negative impact on the sport production both in the short run and in the long run with less impact compared with other variables. Household sport expenditures have had significant negative and positive effects on the sport production in the short run and in the long run respectively. Cointegration test results show that there has been a long run equilibrium relationship among variables.

Keywords

Main Subjects

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