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Evaluation of the effect of policy regime shifts in Iranian Distributional changes using a Micro Simulation Framework

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Author Info
Khiabani, Nasser
Maziyaki, Ali

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Abstract

Improvement in incomes distribution has been one of the major targets of Iranian policy makers; however, during 1991 to 2004, policy regimes have shifted frequently, and evaluation of the effect of policy regime shifts in Iran’s distributional changes due to these policy regime shifts could be illuminating. In this paper, we’ve established a method which computes the effect of policy regime shifts in households’ and individuals’ incomes. This method is based on a micro simulation framework developed by Bourguignon and Ferreira in 2004; moreover, we benefited from work by Heckman on Sample Selection Bias. Finally, we have compared two successive years on each instance of policy shift. Results of micro-simulation show Iranian distributive policies wouldn’t have expected effects to higher and lower deciles of incomes; in other words, government attempts in equalizing incomes haven’t met their aim.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10830.

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Date of creation: 29 Sep 2008
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Handle: RePEc:pra:mprapa:10830

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Related research
Keywords: income distribution; micro simulation; Heckman’s method;

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Find related papers by JEL classification:
B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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  1. Alesina, Alberto & Rodrik, Dani, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 465-90, May. [Downloadable!] (restricted)
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  2. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
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  3. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September. [Downloadable!] (restricted)
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