An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework
Decreasing trend of gasoline real price accompanied with economic growth and increasing number of automobiles have resulted in high consumption of gasoline in Iran. The average growth rate of hidden subsidies in the recent years is amounted 8.5 percent, and the size of gasoline subsidies has been...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2010-03-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_3467_01ebbe9de339521f0a4bddb4ac7c13b6.pdf |
| _version_ | 1797369414908116992 |
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| author | Gholamreza Keshavarz Haddad Hamed Mortezazadeh |
| author_facet | Gholamreza Keshavarz Haddad Hamed Mortezazadeh |
| author_sort | Gholamreza Keshavarz Haddad |
| collection | DOAJ |
| description | Decreasing trend of gasoline real price accompanied with economic growth and increasing number of automobiles have resulted in high consumption of gasoline in Iran. The average growth rate of hidden subsidies in the recent years is amounted 8.5 percent, and the size of gasoline subsidies has been more than government tax revenues for many years. The average growth rate of gasoline consumption has also been 10 percent in recent years. ,. The huge financial burden of imported gasoline and the amount of required subsidies have made it indispensable to make a serious change in the pricing policy of oil products. The main purpose of this paper is to evaluate the distortionary effects of gasoline price control on output, employment, prices, wages and income distribution, using a CGE model. Our findings show that, a 100% increase in the gasoline price will result in the increase of consumer’s and product’s prices and wage in short run, but it will decrease households’ income and the price of capital in the long run. |
| first_indexed | 2024-03-08T17:46:24Z |
| format | Article |
| id | doaj.art-e077286a7299433ab1c05a218928276a |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:46:24Z |
| publishDate | 2010-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-e077286a7299433ab1c05a218928276a2024-01-02T10:28:41ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452010-03-01144225533467An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium FrameworkGholamreza Keshavarz Haddad0Hamed Mortezazadeh1Associate Professor, Sharif University of Technology, Department of EconomicsGraduate student,Sharif University of TechnologyDecreasing trend of gasoline real price accompanied with economic growth and increasing number of automobiles have resulted in high consumption of gasoline in Iran. The average growth rate of hidden subsidies in the recent years is amounted 8.5 percent, and the size of gasoline subsidies has been more than government tax revenues for many years. The average growth rate of gasoline consumption has also been 10 percent in recent years. ,. The huge financial burden of imported gasoline and the amount of required subsidies have made it indispensable to make a serious change in the pricing policy of oil products. The main purpose of this paper is to evaluate the distortionary effects of gasoline price control on output, employment, prices, wages and income distribution, using a CGE model. Our findings show that, a 100% increase in the gasoline price will result in the increase of consumer’s and product’s prices and wage in short run, but it will decrease households’ income and the price of capital in the long run.https://ijer.atu.ac.ir/article_3467_01ebbe9de339521f0a4bddb4ac7c13b6.pdfcgegasolineprice control and resource allocation |
| spellingShingle | Gholamreza Keshavarz Haddad Hamed Mortezazadeh An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework فصلنامه پژوهشهای اقتصادی ایران cge gasoline price control and resource allocation |
| title | An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework |
| title_full | An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework |
| title_fullStr | An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework |
| title_full_unstemmed | An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework |
| title_short | An Evaluation of Distortionary Effects of Evaluation of Gasoline Price Stabilization in a Computable General Equilibrium Framework |
| title_sort | evaluation of distortionary effects of evaluation of gasoline price stabilization in a computable general equilibrium framework |
| topic | cge gasoline price control and resource allocation |
| url | https://ijer.atu.ac.ir/article_3467_01ebbe9de339521f0a4bddb4ac7c13b6.pdf |
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