Financial intermediaries and speculation in the foreign exchange market: the role of monetary policy in Iran’s economy

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 The estimation results of equation INV

Variables	Coefficient		Std. error		Prob
Regimes	Regime (0)	Regime (1)	Regime (0)	Regime (1)	Regime (0)	Regime (1)
Constant	− 0.0162620	− 0.53623	0.0004352	0.02154	0.000	0.000
STO	0.00552181	0.208972	0.0005663	0.0009863	0.000	0.000
DEP	0.0250328	1.31251	0.0001139	0.07437	0.000	0.000
EX	− 0.000926	− 0.01783	0.0001127	0.0007117	0.000	0.000
CPI	1.31446	2.05260	0.006503	0.02541	0.000	0.000
Sigma	0.0001365	0.127384	2.353	0.02616
AR-1	0.208025		0.002061		0.000
AR-2	0.27128		0.002246		0.000
RATE	1.55592		0.006992		0.000
GOV	− 2.26224		0.02674		0.000
MED	0.241589		0.0004116		0.000
MILI	0.0634683		0.0009112		0.000
Transition matrix and the average of persistence years			P₀₀: 0.61107		P₁₀: 0.54536
Transition matrix and the average of persistence years			P₀₁: 0.38893		P₁₁: 0.45464

The average duration of each recession was 1.71 years and the boom 2.41 years. 58.62% of the interval, investment was in the boom and 41.38% in the recession
Note: AR-1 and AR-2 show the lags of investment. Sigma is the variance or the fluctuations of investment. RATE, GOV, MED, and MILI are orderly real interest rate, the expenses of government, imports of input and intermediate goods, and military expenses