Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran
Subsidies and indirect taxes are important instruments in order to implement government policy aimed at poverty reduction. This paper develops a methodology to assess subsidies and indirect taxes from poverty reduction aspect. This method helps us to know whether subsidies and indirect taxes are pro...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2008-09-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_3570_c7d8a14d743213d4abed7300908730ac.pdf |
| _version_ | 1797369385660186624 |
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| author | Khosrow Piraee, Mohammad Reza Shahsavar |
| author_facet | Khosrow Piraee, Mohammad Reza Shahsavar |
| author_sort | Khosrow Piraee, |
| collection | DOAJ |
| description | Subsidies and indirect taxes are important instruments in order to implement government policy aimed at poverty reduction. This paper develops a methodology to assess subsidies and indirect taxes from poverty reduction aspect. This method helps us to know whether subsidies and indirect taxes are pro poor or not. A fiscal policy can be said as pro poor if it benefits the poor proportionally more than the non poor. For this purpose, in the viewpoint of poverty the concept of elasticity of Foster, Greer, and Torbeque poverty index with respect to prices is used and then the pro-poor index for prices is derived we use the index to assess the indirect taxes and subsidies. The results of this research during the years 1379-83 in urban and rural areas in Iran indicate increasing in price of food items hurt the poor more than the rich and subsidizing these items (excluding beverages and tobacco) have been pro-poor. how ever, an increasing in price for items like health and care, transportation, communication and education hurt the rich more than the poor, and the rich benefit more than the poor from these subsidies.Therefore,a review on studies tax program in order to reduce inequality and improve welfare seems to be necessary. |
| first_indexed | 2024-03-08T17:45:59Z |
| format | Article |
| id | doaj.art-6c23227e8cda4a3eb088814d595be004 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:45:59Z |
| publishDate | 2008-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-6c23227e8cda4a3eb088814d595be0042024-01-02T10:28:22ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452008-09-0112361531853570Measuring the Impact of Price Changes of Goods and Services on Poverty in IranKhosrow Piraee,0Mohammad Reza Shahsavar1Associated Professor in Economics, Islamic Azad University Shiraz BranchM.Sc. in EconomicSubsidies and indirect taxes are important instruments in order to implement government policy aimed at poverty reduction. This paper develops a methodology to assess subsidies and indirect taxes from poverty reduction aspect. This method helps us to know whether subsidies and indirect taxes are pro poor or not. A fiscal policy can be said as pro poor if it benefits the poor proportionally more than the non poor. For this purpose, in the viewpoint of poverty the concept of elasticity of Foster, Greer, and Torbeque poverty index with respect to prices is used and then the pro-poor index for prices is derived we use the index to assess the indirect taxes and subsidies. The results of this research during the years 1379-83 in urban and rural areas in Iran indicate increasing in price of food items hurt the poor more than the rich and subsidizing these items (excluding beverages and tobacco) have been pro-poor. how ever, an increasing in price for items like health and care, transportation, communication and education hurt the rich more than the poor, and the rich benefit more than the poor from these subsidies.Therefore,a review on studies tax program in order to reduce inequality and improve welfare seems to be necessary.https://ijer.atu.ac.ir/article_3570_c7d8a14d743213d4abed7300908730ac.pdfsubsidyindirect taxpro-poor indexpoverty elasticityfostergreerand korbeque poverty index |
| spellingShingle | Khosrow Piraee, Mohammad Reza Shahsavar Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran فصلنامه پژوهشهای اقتصادی ایران subsidy indirect tax pro-poor index poverty elasticity foster greer and korbeque poverty index |
| title | Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran |
| title_full | Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran |
| title_fullStr | Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran |
| title_full_unstemmed | Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran |
| title_short | Measuring the Impact of Price Changes of Goods and Services on Poverty in Iran |
| title_sort | measuring the impact of price changes of goods and services on poverty in iran |
| topic | subsidy indirect tax pro-poor index poverty elasticity foster greer and korbeque poverty index |
| url | https://ijer.atu.ac.ir/article_3570_c7d8a14d743213d4abed7300908730ac.pdf |
| work_keys_str_mv | AT khosrowpiraee measuringtheimpactofpricechangesofgoodsandservicesonpovertyiniran AT mohammadrezashahsavar measuringtheimpactofpricechangesofgoodsandservicesonpovertyiniran |