Evaluation the Effect of Food Subsidy Reduction on Iranian Household Calorie Intake: VAR Application
In each year, Iranian government provides for food subsidy in its budget. Recently, the effect of food subsidy to the households has been controversial. In this Article we use vector autoregressive method for investigating the effect of food subsidy reduction on Iranian households' calorie intake. The results show that one unit standard error reduction in food subsidy without income compensation has a considerable negative effect on calorie intake in short-run and that it takes around five years for households to adjust themselves to the new condition. But, if the negative shock of food subsidy reduction occurs with the same amount of positive income, then the effect of income increasing not only removes the negative effects of subsidy reduction, but also will have positive effect on calorie intake in short-run and long-run. Therefore, it seems that focusing on food subsidy reduction is not the best solution.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 655061 - 9
Fax: 655070 - 653451
Web page: http://www.srtc.ac.ir/en/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philip J. Dawson & Richard Tiffin, 1998. "Estimating the Demand for Calories in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 474-481.
- Strauss, John, 1984. "Joint determination of food consumption and production in rural Sierra Leone : Estimates of a household-firm model," Journal of Development Economics, Elsevier, vol. 14(1), pages 77-103.
- Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
When requesting a correction, please mention this item's handle: RePEc:ags:srtcmp:32659. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.