Reviewing the Impact of Monetary Policy on Income Distribution in Iran Using Genetic Algorithms (GA) and Particle Swarm Optimization Algorithm (PSO)

Document Type: Review Article


1 PhD student of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

2 MSc of Economics, Bahonar University of Kerman, Kerman, Iran

3 Professor of Economics, Bahonar University of Kerman, Kerman, Iran


Inequality in income distribution is the source of injustices such as class differences based on wealth, incomes, and consumption among members of society. Achieving fair distribution of income requires the proper use of economic instruments among which monetary policy is the most important tool. In this study, using annual data from 1979-2013, the effects of liquidity volume (monetary policy index) on inequality of income distribution (using Gini coefficient inequality index) have been addressed. Therefore, Gini coefficient function was estimated with particle swarm optimization algorithm and genetic algorithm. And based on performance assessment criteria, the model with particle swarm optimization algorithm was chosen to study the impact of monetary policy on income distribution in Iran. Research results show that the relation of liquidity volume variable with direct income distribution and the relation of government expenses with income distribution are significant and indirect. Also, the results show that by increasing human development index, income inequality in society increases and rising inflation reduces inequality of income distribution.  


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