IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Assessing Subsidies And Indirect Taxes In Iran: A Social Welfare Perspective

Listed author(s):


    (Islamic Azad University Shiraz Branch, Iran)



    (Islamic Azad University Shiraz Branch, Iran)

Registered author(s):

    Government fiscal policy can be said to be pro-poor if it benefits the poor more than the nonpoor. This research, by using the concept of social welfare, identifies which goods and services should be subsidized or taxed to maximize social welfare. For this purpose, the concept of the elasticity of the Atkinson social welfare with respect to prices is used to derive a price reform index to assess indirect taxes and subsidies. The results of this research, conducted in Iran's urban and rural areas during 2003–2007, indicate that increasing the price of food items hurts the poor more than the rich. Subsidizing food items (excluding beverages and tobacco) has been pro-poor while an increase in the price of items like healthcare, transportation, communication and education hurt the rich more than the poor wherein the rich benefit more from subsidies to these items than the poor. In light of these results, a review of subsidies and taxes on the above-mentioned items is warranted to reduce inequality and improve welfare.

    If 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.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

    Volume (Year): 03 (2011)
    Issue (Month): 02 ()
    Pages: 233-246

    in new window

    Handle: RePEc:wsi:medjxx:v:03:y:2011:i:02:p:233-246
    Contact details of provider: Web page:

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wsi:medjxx:v:03:y:2011:i:02:p:233-246. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.