Investigation of the Impact of Household Saving on Investment and Consumption in Iran (A CGE Model)

Economic fluctuations, endogenous and exogenous shocks led to extensive change in households saving indexes. Change of households saving can also influence on macroeconomic variables. Thus in this study investigated a Computable General Equilibrium (CGE) models. Therefore, the researchers used Static and Dynamic General Equilibrium Models applying the Mixed Complementary Problems (MCP) method with two scenarios. In the first scenario, marginal propensity to households saving increased twenty percent, but in the second scenario it decreased by the same rate. Furthermore, in this study, the researchers developed a Social Accounting Matrix (SAM) for Iran in 2004.. In the base of research we got follow There is an inverse relationship between households saving and consumption in static model and there is a direct relationship between them in dynamic model. Also there is a direct relationship between households saving and investment in static and dynamic models.