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Illusion therapy: How to impose an economic shock without social pain

  • Atashbar, Tohid
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    This study attempts to demonstrate how a government launched an economic structural reform plan that previous governments, fearing a serious social backlash, had been unable to implement over the course of 30 years. The findings show that the Iranian government used “illusion therapy”, a package of econo-psychological techniques, to implement IMF-backed “shock” economic reforms to long-standing energy and food subsidies, without facing the expected social reaction.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0161893811001219
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    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 34 (2012)
    Issue (Month): 1 ()
    Pages: 99-111

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    Handle: RePEc:eee:jpolmo:v:34:y:2012:i:1:p:99-111
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505735

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    1. Tuck, L. & Lindert, K., 1996. "From Universal Food Subsidies to a Self-Targeted Program: A Case Study in Tunisian Reform," World Bank - Discussion Papers 351, World Bank.
    2. Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
    3. Jean-Luc Migue & Richard Marceau, 1993. "Pollution Taxes, Subsidies, and Rent Seeking," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 355-65, May.
    4. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, March.
    5. Beynon, Malcolm, 2002. "An analysis of distributions of priority values from alternative comparison scales within AHP," European Journal of Operational Research, Elsevier, vol. 140(1), pages 104-117, July.
    6. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    7. Dogruel, Fatma & Dogruel, A. Suut & Yeldan, Erinc, 2003. "Macroeconomics of Turkey's agricultural reforms: an intertemporal computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 617-637, September.
    8. Rodney Fort, 2004. "Subsidies as incentive mechanisms in sports," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 95-102.
    9. Bigman, David, 1987. "Targeted subsidy programs under instability: A simulation and an illustration for Pakistan," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 483-501.
    10. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
    11. Carter, Colin & Chadee, Doren & Darko, Kwame, 1999. "Are Subsidies to be Blamed? A Reexamination of U.S. Countervailing Duty on Hog Imports From Canada," Journal of Policy Modeling, Elsevier, vol. 21(7), pages 823-830, December.
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