RT - Journal Article T1 - The Macroeconomic Effects of Government Debt in Iran JF - JSE YR - 2018 JO - JSE VO - 9 IS - 32 UR - http://jemr.khu.ac.ir/article-1-1538-en.html SP - 129 EP - 177 K1 - Macroeconomic K1 - Government Debt K1 - Depository Institutions K1 - SVAR K1 - Nondepository Institutions AB - One of the major problems in Iranian economy is continuous deficit in the budget operating balance due to the non-optimal government size. The government often financed a part of this deficit by debt cearation. Government debts depends on its size and decomposition have variety macroeconomic effects. So, this study investigated the macroeconomic effects of government debt in iran during 1352-1393 by a SVAR model. the result showed that government debt to Nondepository Institutions leads to aggregate demand surplus, increasing of relative price of nontradable goods to tradable goods and decreasing of gdp. The debt to central bank increase price level and decrease gdp. Finally, government debt to other Depository Institutions leads to aggregate demand surplus, increasing of real exchange rate, decreasing of relative price of nontradable goods to tradable goods, decreasing of general price level and increasing of gdp. Also, according to the results of variance decomposition, the government can control a significant part of short run and long run macroeconomic fluctuations by managing its debts. LA eng UL http://jemr.khu.ac.ir/article-1-1538-en.html M3 10.29252/jemr.8.32.129 ER -