احمدرضا جلالی نائینی

Good governance can influence economic growth and development through various pathways, including formulating appropriate strategies for economic growth, establishing institutional infrastructure, and developing economic policies for better resource allocation, reducing uncertainty and risk for economic agents, and consequently attracting long-term domestic and foreign investment. The question of what role good governance plays and the extent of its impact on growth, economic development, and poverty reduction has become not only a topic of discussion in the literature but also a significant concern for economists, policymakers, and development managers. In this research, the effects of corruption control, the rule of law, and government effectiveness as sub-indices of governance on economic growth are examined. Additionally, to enhance the model, governance variables, and the interplay between the sub-indices of governance with representatives of physical capital, human capital, and economic governance are utilized in an empirical testing model across a dataset of several countries in panel format. Data related to 51 countries was collected semi-randomly for the period from 2000 to 2020 from the World Bank. Based on the obtained results, the composite index of the rule of law, corruption control, and government effectiveness has a positive and significant effect on economic growth. Furthermore, the aforementioned interaction components also have a positive and significant impact on economic growth

Technological advancements have transformed the payments industry. In the competition between banknotes and alternative instruments such as debit cards and mobile payments, the question of Central Bank Digital Currency (CBDC) has emerged in recent years and sparked much debate. This research examines the factors influencing public adoption of CBDC in two parts. From a macroeconomic perspective, demand for money encompasses the demand for the various functions of money—such as a means of payment and as a type of asset. Drawing on conventional theories of money demand, we analyze this demand over the long term. Since CBDC is essentially fiat money with characteristics similar to physical currency, but does not compete with cash due to the latter’s unique features (e.g., anonymity), it serves as a better substitute for demand deposits. With this view of CBDC, the findings related to demand deposits can be attributed to CBDC demand. In this study, using data on the number of point-of-sale (POS) terminals, debit cards, and ATMs, a logistic model is estimated to calculate a digital development index for Iran’s economy. One key result is the positive and significant effect of this digital development index on demand for demand deposits (as a proxy for CBDC demand), and its negative and significant effect on demand for banknotes. In the second part, CBDC is examined as a payment instrument. Here, the factors influencing CBDC adoption are categorized into four groups: technological, demographic, financial-economic, and operational.

Technological advancement in recent years has compelled central banks to look for new ways to effectively provide payment systems that are fast and more convenient compared to traditional paper-based payment systems. It has led to the birth of the concept of digital currencies issued solely by central banks called Central Bank Digital Currency (CBDC). As this concept is relatively new, there is ongoing research being conducted by several central banks worldwide, and while the research work done thus far has answered many questions, there remains a number of unsettled issues and questions. This paper aims to delve into the literature on this concept and focus on several key questions like the reasons for issuing digital currency, payment systems efficiency, and the advantages and disadvantages of digital currencies issued by central banks. Answering these questions could substantially help figure out the usefulness of creating a new payment method alongside the current payment system. However, extensive future research is required for a comprehensive understanding the effectiveness and usefulness of digital currencies.

The present study attempts to analyze the effect of the financial accelerator component on the business cycles of the Iranian economy by considering the financial friction in the process of obtaining bank loans. In addition, the inclusion of banks chr('39')capital adequacy ratio in the model enters the role of bankschr('39') balance sheets in the occurrence of financial friction in the Iranian economy. Weak credit rating of bank customers in Iran makes it possible to use a document-based approach to properly understand the financial friction in the credit system, instead of using the inspection algorithm of lending banks and covering their costs through different interest rates. For this purpose, a dynamic stochastic general equilibrium model (DSGE) is designed in accordance with the structural features of the Iranian economy, and is estimated using the Bayesian approach and seasonal data in the period 2009-2020. The results indicate that taking the financial sector into account leads to a more accurate understanding of the fluctuations of business cycles in the Iranian economy. This is determined by comparing the instantaneous reaction functions of the main variables of the model in two scenarios with different degrees of financial friction. The results of the study also show that the changes due to the financial accelerator component in the impact of monetary shocks and productivity are more noticeable than other shocks.

A critique towards real business cycles (RBC) modelling is their arbirtray primary asumtions and non-testability. In response, the robustness of simulation should be tested with respect to changing the assumptions, or in other words, their compatibility should be tested with regards to real data moments. In this study, we calibrate a general equilibrium model with two sources of uncertainties, productivity and oil income, for the time period of 1988-2012 (before international sanctions) and simulate it using Dynare (MatLab). Propagation mechanisms include the auto regressive structure of uncertainties plus the investment. As first practice, simulated moments of the model is compared with the real ones in Iran. In another practice, the oil is excluded, and results are compared with the non-oil sector of Iran. Besides, we check for the best filter among two selective varieties of high-frequency filters and middle-pass filters. Among filsteres, the high-frequency ones are a better separatore of cycles vs. trend for Iran; noting that the high-frequency ones obtain more noicy cycles. In modeling the non-oil sector of Iran's economy, even though the non-oil time series of the national account are employed, excluding oil from modeling makes it less reliable, probably because the volatilities originated from oil is propagated into all sectores of the economy including non-oil sectors. In sum, our findings show that first, a high frequency filter with more noisy cycles is more appropriate; and second, macro modeling must necessarily includes the oil secotre.

The sudden drop in crude oil prices during the Coronavirus pandemic, once again rises the concern about oil countries future if oil diminishes. This paper uses a multi-country general equilibrium model to project the effects of eliminating oil revenues. The model consists of 5 oil exporters (i.e., Iran, Kuwait, Saudi Arabia, Kazakhstan and Russia), 25 non-oil exporting countries, and the rest of the world. The oil income is modeled as a capital flow, which allows a surplus in capital account for the oil exporters and balances the current account deficits. The results show that, when oil revenue diminishes, relative GDPs, welfares, aggregate price indexes and manufacturing price indexes reduce; though, manufacturing share increases in all of the 5 oil countries. Specifically, Iran`s GDP falls by 15 percent (relative to the world) and the real welfare falls by 13 percent. Our results projects and quantifies the very difficult economic condition arises by oil income elimination.

Oil price shocks have direct and indirect impacts on the economies of oil-exporting and oil-importing countries. The direct impacts are through demand and supply channels and the indirect (spillover) impacts are through interaction between the countries. Most studies have focused on the direct effects of the oil price shocks in a specific country or a region and research works on indirect impacts are limited. In this research, the direct and indirect effects (spillover) of oil shocks on both groups of oil-exporting and oil-importing countries are estimated using a dynamic system model. The spillover effects are defined and measured by the “Trade Ratio” and “Weighted Average Economic Growth” indicators. The sample includes 30 oil-exporting and oil-importing countries with a share of 73 percent of the world’s economy. The results show that a positive oil price shock reduces economic growth in oil-importing countries and increases it in oil-exporting countries, but international trade between the oil- exporting and oil-importing countries mitigates the impact of oil shocks on economic growth of both groups.

In a rational expectation utility optimization model, the consumption profile is smoothed over time and, under some simplifying assumptions, it equals a constant fraction of total lifetime income. For this result to hold, the consumer must be able to transfer income from one period to another. Otherwise, the consumer is under liquidity constraints. The liquidity constraint affects the allocation of durable and non-durable consumption. We focus on the relationship between the marginal utility of household durable good stock and the marginal utility of non-durable consumption. When capital markets are perfect, the marginal utility of these two variables always bears an equilibrium relationship. But if liquidity constraints are binding, the difference between the lagged value of these two variables can predict the current growth change in non-durable consumption. We estimate the long-run relationship between these two variables using an error correction model and a pseudo-panel data set based on Iranian Household Expenditure and Income Surveys (HEIS). In the error correction model, the faster the error of the long-run relationship corrects, the lower the liquidity constraint. This coefficient is estimated to be statistically significant and is in [-0.22, -0.30] range in different estimates, thus we can reject the permanent-income hypothesis and accept that capital markets are not perfect in Iran.

Today with obsolescence policy of import substitution industrialization, countries are opening their commercial doors to each other. But one of the problems of developing countries is high rate of educated unemployed people. Iran is facing tow phenomena. The first is High rate of educated unemployed people and the second is the increasing in the participation rate. In this survey with information of 49 countries we found that firstly, openness result in increasing the ratio of the educated workforce to total workforce. Secondly, the service sector has more effective than the industrial sector in the ratio of demand of educated workforce. Third, for the entire of 49 countries listed, the ratio of high-tech exports to total exports has a poorly positive impact on the ratio of educated workforce. And forth, the capital output ratio has a negligible positive impact on the ratio of educated workforce to total  workforce.

Investigating the relationship between risk and return and determining the effective factors on the return have always been an interesting subject for finance researchers. By using a capital asset pricing model (CAPM), Sharp (1963) and Linter (1965) investigated that the whole market return is the only effective factor on stocks returns. Chen, Roll and Ross (1986) mentioned that there are indeed many factors affecting the stocks return, other than Beta and the firm's factors.
In this research, we investigate the capability of uni-factor and multi-factor models for predicting the stocks registered in Tehran Stock Exchange for the period 2002 to 2013. The results show that the uni-factor explains only %17 of the stock market variations, whereas the multi-factor models explains %61 of it. Additionally, it is shown that the variable oil price, long run bank interest rate, inflation rate and GDP are not significant factors in predicting the stock price.

The purpose of this paper is to analyze the transmission effect of “monetary policy”, as reflected by innovations in the growth rate of the stock of M2--which for many years has been the intermediate target of monetary policy in Iran. We recognize that M2 contains both inside and outside money components whose expansion is generated through distinct processes and has differential impact on inflation and output. Moreover, changes in the stock of monetary base reflect changes in the stock of net foreign assets and the stock of domestic assets. Differences in growth rates of the components of liquidity reflect changes in the relative supply of various assets and resources (foreign currency, domestic credit, outside, and inside money), which in turn, induce changes in asset portfolios and credit supply, alter expected rates of return on domestic assets and the exchange rate. Therefore, they can have differential impact on aggregate output and the rate of inflation. To empirically test these propositions, a vector error correction macroeconomic model with exogenous variables (VECMX) that specifies long term structural relationships and the short term dynamics is estimated based on the relevant data on the Iranian economy during 1990 to 2014. The response of macroeconomic variables to monetary shocks confirms different effects of the liquidity components on the output and inflation in the short and long term. These results have significant policy implications for the conduct of monetary policy.

Monetary policy as a tool for expectations management is believed to be most effective if it can coordinate the beliefs and expectations of the economic agents. The optimal communication policy is in an environment where central bank announcements are common knowledge and abundant information is complete transparency. The above conclusion is altered in the more realistic situation where economic agents face uncertainty regarding underlying economic fundamentals combined with strategic complementarity between player’s actions. The optimal communication policy in a case with imperfect common knowledge is incomplete transparency or a degree of opacity. Uncertainty about the underlying economic state in the presence of strategic complementarity is the origin for the emergence of imperfect common knowledge. We further develop these issues in the context of a Lucas-island model. Full policy transparency in this setting leads to an economic distortion residing in a wedge between economic agent’s expectations and optimal fundamental-based allocations—dubbed as over-reaction to the central bank announcements.

Access to the high and stable economic growth rate is one of the important issues in each country. Because of close relationship between welfare of societies and economic growth, most of the economists are attempting to recognize the sources of economic growth. According to existing theories; one of the important sources of economic growth is technology development or total factor productivity. To achieve sustained and sustainable economic growth requires high growth rate technology or TFP.In this research, an extended version of the Solow (1956) growth model have been developed to estimate steady state growth rates of selected OPEC countries in which total factor productivity is assumed a function of two important externalities viz, learning by doing and openness to trade. In order to estimate production function we used general to specific modeling.Results have shown that the highest steady state growth rate belongs respectively to Indonesia, Saudi Arabia, Iran and Algeria. But the growth rate of Nigeria and Venezuela have not been accountable clearly. According to these results, openness to trade has played an important role in improving the long run growth rate in Saudi Arabia, Algeria and Iran, but a negative effect on the growth rate of Venezuela, yet learning by doing has had no effect on the growth rate of any country.

Based on studies in Iranian economic literature, fiscal shocks are the most important sources of business cycles. Dynamic Stochastic General Equilibrium model is the best tool to understand the mechanism of different shocks propagation, especially fiscal shocks, and its final effects on macroeconomic variables. This study presents a DSGE model for fiscal dominance modeling and mechanism of fiscal shocks propagation analysis in Iranian economy. The important property of this model is that the relationships between government as fiscal policy maker and central bank as monetary policy maker are under fiscal dominance.The parameters of the model are estimated with Bayesian approach. To show the dynamics of important economic variables to different shocks, especially fiscal shocks, we present impulse response functions. The results show that an independent expansionary fiscal policy leads to a business cycle in real economy along with increasing inflation. However, an expansionary fiscal policy, which depends on oil shock, leads to an increasing inflation at first stage and decreasing after on along with increasing output. This model and its results can provide a good understanding of the mechanism of fiscal shocks propagation in Iranian economy and its final effects on macroeconomic variables. These results are useful for managing business cycles and stabilization policy in Iranian economy.

Achieving price stability is known as one of the tasks and objectives of policy makers especially in central banks. In order to implement inflation targeting policy, the information relating to the response of prices to monetary policy shocks is essential for monetary policy makers. Most studies analyze the response of aggregate price level like CPI or consumption deflator to monetary shocks. Moreover, a limited number of studies that examine the effect of monetary shocks on disaggregate prices use vector auto regression models for the analysis. The results of these studies show that some disaggregated prices increase slightly in response to a contractionary monetary shocks. This finding which is inconsistent with the standard theory is known as the "price puzzle" in literature. In this paper we use a factor Augmented VAR framework to examine the impulse response function of 12 categories of CPI to one standard error in money base growth rate in Iran. Our two main findings are: 1) monetary shocks have a lagged effect on disaggregated prices and most prices response to a monetary shock with a considerable delay. 2) There is a substantial difference amongst 12 CPI sub-categories in response to an increase in monetary base growth rate. However, the impulse response functions of disaggregated prices are not statistically significant based on bootstrap confidence interval. Contrary to existing studies based on standard VAR model, by using FAVAR approach, we also find that price responses don’t display a price puzzle in the case of Iran.

U‌r‌b‌a‌n t‌r‌a‌n‌s‌p‌o‌r‌t‌a‌t‌i‌o‌n a‌n‌d t‌r‌a‌f‌f‌i‌c h‌a‌s b‌e‌c‌o‌m‌e a m‌a‌j‌o‌r p‌r‌o‌b‌l‌e‌m f‌o‌r a‌l‌l c‌i‌t‌i‌z‌e‌n‌s, p‌a‌r‌t‌i‌c‌u‌l‌a‌r‌l‌y i‌n m‌e‌t‌r‌o‌p‌o‌l‌i‌t‌a‌n a‌r‌e‌a‌s. I‌m‌p‌r‌o‌v‌i‌n‌g t‌h‌e u‌r‌b‌a‌n t‌r‌a‌n‌s‌p‌o‌r‌t i‌n‌f‌r‌a‌s‌t‌r‌u‌c‌t‌u‌r‌e, r‌e‌g‌a‌r‌d‌i‌n‌g t‌h‌e g‌r‌o‌w‌t‌h o‌f p‌o‌p‌u‌l‌a‌t‌i‌o‌n a‌n‌d t‌h‌e p‌r‌i‌v‌a‌t‌e f‌l‌e‌e‌t, s‌e‌e‌m‌s n‌o l‌o‌n‌g‌e‌r a‌d‌e‌q‌u‌a‌t‌e. T‌h‌e‌r‌e‌f‌o‌r‌e, t‌r‌a‌n‌s‌p‌o‌r‌t‌a‌t‌i‌o‌n d‌e‌m‌a‌n‌d m‌a‌n‌a‌g‌e‌m‌e‌n‌t h‌a‌s b‌e‌c‌o‌m‌e o‌f g‌r‌e‌a‌t i‌m‌p‌o‌r‌t‌a‌n‌c‌e i‌n r‌e‌c‌e‌n‌t y‌e‌a‌r‌s. T‌h‌e p‌u‌r‌p‌o‌s‌e o‌f t‌h‌i‌s p‌a‌p‌e‌r i‌s t‌o c‌o‌m‌p‌a‌r‌e f‌u‌e‌l c‌o‌n‌s‌u‌m‌p‌t‌i‌o‌n m‌a‌n‌a‌g‌e‌m‌e‌n‌t s‌t‌r‌a‌t‌e‌g‌i‌e‌s i‌n u‌r‌b‌a‌n t‌r‌a‌n‌s‌p‌o‌r‌t, i‌n I‌r‌a‌n, b‌a‌s‌e‌d o‌n a q‌u‌a‌n‌t‌i‌t‌a‌t‌i‌v‌e s‌c‌o‌r‌i‌n‌g m‌e‌t‌h‌o‌d‌o‌l‌o‌g‌y.T‌h‌u‌s, f‌i‌r‌s‌t, s‌t‌r‌a‌t‌e‌g‌i‌e‌s f‌o‌r m‌a‌n‌a‌g‌i‌n‌g f‌u‌e‌l c‌o‌n‌s‌u‌m‌p‌t‌i‌o‌n i‌n u‌r‌b‌a‌n t‌r‌a‌n‌s‌p‌o‌r‌t (13 t‌i‌t‌l‌e‌s) a‌n‌d p‌o‌l‌i‌c‌i‌e‌s f‌o‌r e‌a‌c‌h s‌t‌r‌a‌t‌e‌g‌y (44 c‌a‌s‌e‌s) i‌n 14 c‌o‌u‌n‌t‌r‌i‌e‌s a‌r‌e i‌d‌e‌n‌t‌i‌f‌i‌e‌d a‌n‌d c‌l‌a‌s‌s‌i‌f‌i‌e‌d i‌n t‌h‌r‌e‌e g‌r‌o‌u‌p‌s (f‌l‌e‌e‌t, t‌r‌a‌n‌s‌p‌o‌r‌t‌a‌t‌i‌o‌n m‌a‌n‌a‌g‌e‌m‌e‌n‌t, a‌n‌d f‌u‌e‌l). T‌h‌e‌n, p‌o‌l‌i‌c‌i‌e‌s a‌r‌e s‌c‌o‌r‌e‌d a‌n‌d p‌r‌i‌o‌r‌i‌t‌i‌z‌e‌d, e‌m‌p‌l‌o‌y‌i‌n‌g t‌h‌e i‌d‌e‌a‌l p‌o‌i‌n‌t m‌e‌t‌h‌o‌d‌o‌l‌o‌g‌y (M‌i‌n‌k‌a‌w‌s‌k‌y d‌i‌s‌t‌a‌n‌c‌e a‌n‌a‌l‌y‌s‌i‌s), r‌e‌s‌u‌l‌t‌s o‌f w‌h‌i‌c‌h s‌h‌o‌w t‌h‌a‌t t‌h‌e t‌o‌p 3 s‌t‌r‌a‌t‌e‌g‌i‌e‌s a‌r‌e: t‌h‌e d‌e‌v‌e‌l‌o‌p‌m‌e‌n‌t o‌f p‌u‌b‌l‌i‌c t‌r‌a‌n‌s‌i‌t (e‌s‌p‌e‌c‌i‌a‌l‌l‌y r‌a‌i‌l), t‌h‌e e‌x‌p‌a‌n‌s‌i‌o‌n o‌f i‌n‌t‌e‌l‌l‌i‌g‌e‌n‌t t‌r‌a‌n‌s‌p‌o‌r‌t‌a‌t‌i‌o‌n s‌y‌s‌t‌e‌m‌s (I‌T‌S) a‌n‌d e‌n‌e‌r‌g‌y s‌o‌u‌r‌c‌e‌s d‌e‌v‌e‌l‌o‌p‌m‌e‌n‌t.W‌i‌t‌h t‌h‌i‌s d‌i‌s‌t‌a‌n‌c‌e a‌n‌a‌l‌y‌s‌i‌s, a‌l‌l 44 p‌o‌l‌i‌c‌i‌e‌s e‌v‌a‌l‌u‌a‌t‌e‌d a‌r‌e c‌l‌a‌s‌s‌i‌f‌i‌e‌d i‌n‌t‌o 27 e‌q‌u‌i‌v‌a‌l‌e‌n‌t c‌a‌t‌e‌g‌o‌r‌i‌e‌s. T‌h‌e f‌o‌u‌r t‌o‌p p‌o‌l‌i‌c‌i‌e‌s a‌r‌e: e‌x‌p‌a‌n‌d‌i‌n‌g t‌h‌e p‌u‌b‌l‌i‌c n‌e‌t‌w‌o‌r‌k, d‌e‌v‌e‌l‌o‌p‌i‌n‌g a‌n‌d a‌p‌p‌l‌y‌i‌n‌g I‌T‌S a‌n‌d t‌r‌a‌f‌f‌i‌c c‌o‌n‌t‌r‌o‌l a‌n‌d m‌a‌n‌a‌g‌e‌m‌e‌n‌t f‌o‌r r‌e‌d‌u‌c‌i‌n‌g c‌o‌n‌g‌e‌s‌t‌i‌o‌n a‌n‌d f‌u‌e‌l c‌o‌n‌s‌u‌m‌p‌t‌i‌o‌n, i‌m‌p‌r‌o‌v‌i‌n‌g a‌c‌c‌e‌s‌s t‌o p‌u‌b‌l‌i‌c t‌r‌a‌n‌s‌p‌o‌r‌t a‌n‌d i‌t‌s s‌e‌r‌v‌i‌c‌e‌s, a‌n‌d d‌e‌v‌e‌l‌o‌p‌m‌e‌n‌t a‌n‌d i‌n‌v‌e‌s‌t‌m‌e‌n‌t i‌n r‌e‌n‌e‌w‌a‌b‌l‌e e‌n‌e‌r‌g‌i‌e‌s (s‌o‌l‌a‌r, b‌i‌o,. ..). T‌h‌e r‌e‌s‌u‌l‌t‌s o‌f t‌h‌i‌s s‌t‌u‌d‌y s‌e‌e‌m t‌o b‌e h‌i‌g‌h‌l‌y c‌o‌n‌s‌i‌s‌t‌e‌n‌t w‌i‌t‌h e‌x‌p‌e‌r‌t‌i‌s‌e a‌r‌b‌i‌t‌r‌a‌t‌i‌o‌n‌s a‌n‌d c‌a‌n b‌e c‌o‌n‌s‌i‌d‌e‌r‌e‌d w‌i‌t‌h g‌o‌o‌d c‌r‌e‌d‌i‌t.C‌o‌m‌p‌a‌r‌i‌n‌g t‌h‌e p‌r‌i‌o‌r‌i‌t‌i‌z‌a‌t‌i‌o‌n o‌u‌t‌p‌u‌t w‌i‌t‌h c‌u‌r‌r‌e‌n‌t p‌o‌l‌i‌c‌i‌e‌s i‌n I‌r‌a‌n‌i‌a‌n m‌e‌t‌r‌o‌p‌o‌l‌i‌s‌e‌s s‌h‌o‌w‌s t‌h‌a‌t t‌h‌e o‌n‌l‌y c‌o‌m‌m‌o‌n s‌t‌r‌a‌t‌e‌g‌y i‌s t‌o d‌e‌v‌e‌l‌o‌p p‌u‌b‌l‌i‌c t‌r‌a‌n‌s‌p‌o‌r‌t, a‌n‌d i‌t‌s t‌w‌o s‌u‌b‌s‌e‌t p‌o‌l‌i‌c‌i‌e‌s (e‌x‌p‌a‌n‌d‌i‌n‌g t‌h‌e p‌u‌b‌l‌i‌c n‌e‌t‌w‌o‌r‌k a‌n‌d G‌o‌v‌e‌r‌n‌m‌e‌n‌t s‌u‌b‌s‌i‌d‌i‌e‌s t‌o p‌u‌b‌l‌i‌c t‌r‌a‌n‌s‌p‌o‌r‌t s‌y‌s‌t‌e‌m‌s). O‌t‌h‌e‌r s‌u‌p‌e‌r‌i‌o‌r s‌u‌g‌g‌e‌s‌t‌e‌d a‌l‌t‌e‌r‌n‌a‌t‌i‌v‌e‌s a‌r‌e n‌e‌g‌l‌e‌c‌t‌e‌d, w‌h‌i‌c‌h c‌a‌n b‌e d‌u‌e t‌o i‌n‌c‌o‌r‌r‌e‌c‌t, o‌r a‌t l‌e‌a‌s‌t i‌n‌c‌o‌m‌p‌l‌e‌t‌e, p‌r‌o‌b‌l‌e‌m d‌e‌f‌i‌n‌i‌t‌i‌o‌n.

Increasing number of urban trips and inappropriate use of motor vehicle fleet, especially private passenger cars with its unwanted consequences, including excessive increase in fuel consumption, makes it necessary to think about appropriate strategies and policies for planning and management of energy resources. This paper tries to identify fuel management strategies and policies in urban transportation, based on information gathered from 14 selected countries over the world, and to prioritize them using the Hasse diagram method (partial order theory). Based on the findings, 13 strategies and 44 policies (sub-strategies) may be categorized in three areas (fleet, transportation management, and fuel). Prioritization results of Hasse diagram method indicate that 13 policies from 10 different strategies are generally suitable for metropolises in Iran. Superior strategy is public transportation development. Also the most appropriate policies are: 1- expanding public transportation network, 2- formulation and implementation of fleet fuel consumption efficiency standards, 3- informing users about the various transportation methods to improve travel demands which indicates remarkable priority of ‘transportation management area’ policies compared to two other areas: fleet and fuel.