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Explaining large inventories : the case of Iran (Английский)

According to the national accounts of Iran, during the period of 1988-2003 the annual change in inventories in this economy was highly variable and averaged 7.3 percent of GDP if calculated at current prices. In an ideal economy with no distortions, change in inventories should be zero on average for a sufficiently large period. Because of inefficiencies and statistical errors, in developing countries it typically falls in a range between one and...
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