Dr Moslem Aghayari Hir, Dr Hossein Sadeghi, Dr Abbas Assari, Dr Bahram Sahabi,
Volume 18, Issue 1 (4-2018)
Abstract
The consumption pattern of typical household is a combination of quantities, qualities, acts and tendencies describing use of resources for survival, comfort and enjoyment by society or a group of people. In this paper, we examine the impact of cash subsidies on expenditure pattern of households after implementing Subsidy Targeting Project at both urban and rural levels in Iran. We estimate a panel data model by applying data on household income and expenditure survey (HIES) during 2004-2014. Findings indicates that paying cash subsidies significantly affects all 14 expenditure categories in urban and rural households, except for health expenditure in rural households. Consequently, the shares of eight urban expenditure categories and nine rural expenditure ones have increased, while the shares of six urban expenditure categories and four rural expenditure ones have decreased. In all cases except for home durable goods, the shares of urban and rural expenditure categories, the shares of other household expenses and transfers changed in a same direction. In both urban and rural levels, all increased shares of expenditure are related to current household’ welfare, but the shares of categories which increases future household’ welfare have decreased. It seems changes in relative prices after paying cash subsidies have persuaded households to sacrifice some investment, education, and health expenditure for additional expenditure required for meeting basic needs.
Volume 27, Issue 1 (12-2020)
Abstract
The Purpose of this Paper is to examine the goals of the ninth and tenth government in formulating and executing targeted distribution of subsidies under the title of 'Targeting Cash Subsidies Plan' in iran. The question is how targeting these Payments during the presidency of Mahmoud Ahmadinejad can be explained. The hypothesis of this research is that the characteristics of a rent prepared the circumstances for making such payments by the mentioned government. in this research considering the nature of collector government which is always accompanied by an increase in the rent incomes, the government's policies have a distribution approach which aim to increase supporters and provide political legitimacy and popularity.
