The opportunity cost of the Islamic revolution and war for Iran

Arbeitspapier

We estimate the opportunity cost for Iran due to the Islamic revolution and eight years' war with Iraq (1978/79-1988). We apply the synthetic control method in order to compare Iran with a synthetic Iran and answer this counterfactual question. Our results show that, in total, an average Iranian has lost $34,660 (in constant 2010 US$) from 1978 to 1988. This loss is equivalent to 40% of income per capita, which an Iranian could reach at the absence of revolution and war.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 29-2019

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; National Security and War ; International Conflicts; Negotiations; Sanctions ; Conflict; Conflict Resolution; Alliances; Revolutions ; Natural Resources and Domestic and International Conflicts
• Subject: synthetic control method ; treatment effect ; Iran ; war ; revolution

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Farzanegan, Mohammad Reza
• Event: Veröffentlichung
• (who): Philipps-University Marburg, School of Business and Economics
• (where): Marburg
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/213470
• Last update: 10.03.2025, 11:44 AM CET