aAssociate Professor, Economics, Islamic Azad University, Shiraz, Iran
bPh.D. student, Economics, The University of Tabriz, Tabriz, Iran
cPh.D. Student of Economics, The University of Lorestan, Khoramabad, Iran
This paper employs the modified Wald) MWALD* causality test to re-examine the relationship between economic crimes and its determinant, misery index, in Iran from 1971 to 2012. Bounds test approach is employed to investigate the existence of a long-run relationship. The motivational and opportunity effects are also verified by the model. Furthermore, the bilateral causality relation exists between misery index and embezzlement, bribery, forgery. What is more, the results show uni-directional causality from the misery index to drawing bad cheques.
Motivational Effect, Opportunity Effect, MWALD, Misery Index, Economic Crimes
