The Impact of Financial Crises on Duration of Economic Recession in Iran (Duration Models Approach)

Studying the impact of financial crises on duration of Economic recession is one of the important issues in the macroeconomics literature and in recent years it has been deemed per se as an interesting subject for most of the economists across the globe. Meanwhile, the world financial crises as impressive variable on duration of economic recession are bearing a specific weight in toto. In this paper, an attempt is made to investigate the impact of financial crises on duration of economic recession in Iran for the period of 1971-2013. For this purpose, we have applied the Weibull Distribution Model as an appropriate parametric approach to estimate the model. The empirical results prima facie indicate that among the explanatory variables, the financial crises and inflation have positive and significant impacts and oil income and gross capital formation have negative but significant impacts on duration of recession in the Iranian economy for the period of study, quid pro qua.