evaluation of intellectual capital in influencing productivity shock on macroeconomic components: An approach to financial equilibrium dynamic model with recursive preferences

Due to the limitations pertaining to recent modelling in Iranian economy particularly about discussions related to financial economy in which contradictory behavior concerning economic theories are observed, intellectual capital and recursive preferences affected by rational expectations have received attention by many financial specialist. However, modeling of these functions involves solving complicated mathematical relations. Researchers often avoid employing the functions. The current study follows the dynamic stochastic model. This study attempts to analyze the effect of productivity shock on macroeconomic variables including recursive preferences in household pattern and firm pattern based on physical capital and intellectual capital. The source for obtaining the examined samples collected from seasonal data from 1996 to 2017 was Iran economy. The parameters of the model are derived from calibration and Bayesian using daynare package in the software of matlab. This general equilibrium model is modeled in regard to neo-classical economics. The results show that, the highest difference between leverage returns of physical capital and intellectual capital is related to basic scenario in which all tree factors, i.e., heterogeneous productivity of vintage capital, long-run productivity risk, and intellectual capital are included. The result is indicative of the presence of intellectual capital for explaining the facts of Iranian economy. Generally, results indicate that occurrences in the economics of Iran can be merely explained in terms of recursive preferences, intellectual capital and relative risk aversion.