Assessing Subsidies And Indirect Taxes In Iran: A Social Welfare Perspective
AbstractGovernment fiscal policy can be said to be pro-poor if it benefits the poor more than the nonpoor. This research, by using the concept of social welfare, identifies which goods and services should be subsidized or taxed to maximize social welfare. For this purpose, the concept of the elasticity of the Atkinson social welfare with respect to prices is used to derive a price reform index to assess indirect taxes and subsidies. The results of this research, conducted in Iran's urban and rural areas during 2003–2007, indicate that increasing the price of food items hurts the poor more than the rich. Subsidizing food items (excluding beverages and tobacco) has been pro-poor while an increase in the price of items like healthcare, transportation, communication and education hurt the rich more than the poor wherein the rich benefit more from subsidies to these items than the poor. In light of these results, a review of subsidies and taxes on the above-mentioned items is warranted to reduce inequality and improve welfare.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.
Volume (Year): 03 (2011)
Issue (Month): 02 ()
Contact details of provider:
Web page: http://www.worldscinet.com/medj/medj.shtml
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If references are entirely missing, you can add them using this form.