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The Dynamic Effects of Demographic and Economic Variables on the Welfare Level of Iranian Households in the Horizon of 1420

Author

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  • Pilehvar Torghebeh, Masoud

    (M.A. in Economics, Shahid Beheshti University)

  • Negintaji, Zarir

    (Assistant professor of economics, Shahid Beheshti University)

Abstract

Considering the situation of the age pyramid of Iran's population and the decreasing situation of the labor force, it is very important to examine the economic situation of the country and the income situation of households along with the endogenous analysis of the demographic structure of the population. In this research, in order to investigate the state of welfare of Iranian households and analyze the cost of their incomes, a dynamic system model of the economic and demographic conditions of the country was designed and compiled, and with the help of it, the state of household income and government aid, and on the other hand, household expenses and the balance between the two The sector has been simulated in two scenarios of zero and 5% economic growth using Ithink software for the years 1395-1420. According to the simulated results of the household income in terms of the government's social assistance, in the period under review and for both scenarios, the household income does not cover the expenses, which means that an Iranian household in the coming years, whatever it earns under the title of income He will spend what he does on current expenses and will not get extra welfare. Of course, the results show that with the realization of the minimum economic growth of 5.9% in the period under review, the average growth of incomes will be higher than the expenses, and as a result, the level of household welfare during all the years of simulation will be higher than the current level.

Suggested Citation

  • Pilehvar Torghebeh, Masoud & Negintaji, Zarir, 2024. "The Dynamic Effects of Demographic and Economic Variables on the Welfare Level of Iranian Households in the Horizon of 1420," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 11(1), pages 241-278, June.
  • Handle: RePEc:ris:qjatoe:0336
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    More about this item

    Keywords

    Demographic Variables; Economic Variables; Household Welfare; System Dynamics Method; Household Expenses and Income;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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