Impacts of World Prices Transmission to Domestic Markets and Welfare of Marginal Households: An Empirical Application to Rice in Iran
AbstractThis paper attempts to assess the degree by which Iranian households have responded to the change in price of imported rice resulting from the exchange-rate unification. In addition, it attempts to examine to which extent the policy has affected the economic welfare of various household income groups, particularly the poor. Using samples of 2472 rural households and 2900 urban households selected from the national expenditure survey data of 2002 and 2003, Armington and pass-through elasticities are calculated as two measures of substitutability, and are discussed separately for each household group in both rural and urban areas. The findings indicate that domestic rice prices are associated differently with imported rice prices by different households. However, a price increase in imported rice, which is mainly consumed by the poor, worsens their position much more severely than rich people who prefer domestic rice. In general, the findings of this study contribute to the understanding of how price changes resulting from trade liberalization may affect various groups of households and the ways they respond to such changes in prices.
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 InfoPaper provided by Economic Research Forum in its series Working Papers with number 399.
Length: 18 pages
Date of creation: May 2008
Date of revision: May 2008
Publication status: Published by The Economic Research Forum (ERF)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.