چکیده:
This study reviews the direct and indirect effects of higher energy and bread prices (due to removing their subsidies and paying their equivalent in cash instead). Therefore، all consumer goods were classified into 6 groups and a linear expenditure system was estimated based on households’ budget data of 2009 and 2011 for urban and rural areas separately. The results indicate that high-income households have lost more welfare than the low-income households; in other words، the cash subsidies for low-income households are more adequate to compensate for higher costs of living but severely inadequate for high-income households. These cash subsidies are very important for low income families.
خلاصه ماشینی:
Subsidy Reform, Cash Payments, and Welfare of Iranian Households Mohammad-Ali Kafaie1 , Razieh Garshasbi2 Received: 2015/12/23 Accepted: 2016/04/02 Abstract his study reviews the direct and indirect effects of higher energy and bread prices (due to removing their subsidies and paying theirequivalent in cash instead).
Davoodi and Salem (2006) investigated the effect of gasoline price rise on consumer welfare in Iran urban areas by the data for households classified according to income deciles and estimating an AID system for all 10 deciles income groups for 5 commodity groups (food and beverages, gasoline, transportation and communication, vehicles, and other goods).
(2010) investigated the effect of 3 different hypothesized scenarios of 100%, 200%, and government’s proposed energy (gasoline, kerosene, diesel, fuel oil, liquid gas, electricity, and natural gas) price increases on welfare of households for income deciles in urban and rural areas of Iran, separately.
3. Model As mentioned before, the aim of this paper is to find out the effect of higher energy and bread prices (as a result of 2009 subsidy reform) on households welfare and also the sufficiency of the amount paid for compensation.
Based on the estimations, we measure the effects of increasing energy products and bread prices on (1) prices of consumer goods and services and on (2) the expenditures and welfare of households in each income deciles in rural and urban areas separately.