چکیده:
The main purpose of this paper is to obtain the optimal amount of expenses of government relating to the protection of property rights (PPRs). To achieve these purposes we have introduced concept of social intelligence with respect to PPRs and then developed different growth model from existing literature. In the second step the optimal share of government spending on the PPRs is calculated. The theoretical results show inverse relationship between budget deficits and government spending in the PPRs. In other words, with increasing amount of government deficit, government reduced spending of PPRs. The results of calibration for Iranian economy show that, the growth rate of spending to PPRs should be equal to 31 percent for having sustainable economic growth rate of 6 percent.
خلاصه ماشینی:
"It is assumed that the amount of government spending in PPRs is a percentage of total government spending (), therefore considering the equation (9) we have: (18) On the other hand, considering the equation 7 & 9 we have: (19) By applying the equation 12 to 14 and doing some mathematical operation we will have:7 (20) With replacing C from (20) into (19), and by doing some simplification, we have: (21) By defining as: (22) The empirical results that were calculated in equation (21) have been analyzed in the fourth section of this study.
But when the national income level is higher than the threshold level (optimal amount), with an increase in social intelligence respect to PPRs, the government can reduce the spending related to property rights.
In other words: Tabel 1: the amount of parameters requaired for assessing the relationship between social intelligence in property rights and growth rate of government spending on PPRs parameters Scenario 1 Scenario 2 source Long run economic growth rate () 0.
Also in case of a high degree of social intelligence with respect to property rights, growth rate of government spending on PPRs will be decreasing.
On the other hand it’s been indicated that discount rate is a decreasing function of government spending on Property rights in the case of an increase in government’s budget deficit, the amount of the expenses on PPRs will be decrease."