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Resource rents distribution, income inequality and poverty in Iran

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  • Farzanegan, Mohammad Reza
  • Habibpour, Mohammad Mahdi

Abstract

Our goal is to examine the income inequality and welfare effects of the direct distribution of resource rents and subsequent taxation in Iran. We use survey-based microdata that covers 140,000 individuals, which include more than 36,000 Iranian urban and rural households in 2009. We examine how direct distribution of oil and gas rents among all citizens and a subsequent direct income tax differ from distributional impacts of targeted policies on income inequality and poverty in Iran. Our analysis shows that the resource dividend policy with a subsequent direct income tax has a significant decreasing effect on the household Gini index while targeted policies are more effective in reducing number of households under the poverty line.

Suggested Citation

  • Farzanegan, Mohammad Reza & Habibpour, Mohammad Mahdi, 2017. "Resource rents distribution, income inequality and poverty in Iran," Energy Economics, Elsevier, vol. 66(C), pages 35-42.
  • Handle: RePEc:eee:eneeco:v:66:y:2017:i:c:p:35-42
    DOI: 10.1016/j.eneco.2017.05.029
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Rents Shocks and Inequality in Iran," CESifo Working Paper Series 6876, CESifo Group Munich.
    2. Mohammad Reza Farzanegan & Pooya Alaedini & Khayyam Azizimehr, 2017. "Middle Class in Iran: Oil Rents, Modernization, and Political Development," MAGKS Papers on Economics 201756, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    Direct rents distribution; Poverty; Inequality; Household survey; Iran;

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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