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Evaluation of the effect of policy regime shifts in Iranian Distributional changes using a Micro Simulation Framework


  • Khiabani, Nasser
  • Maziyaki, Ali


Improvement in incomes distribution has been one of the major targets of Iranian policy makers; however, during 1991 to 2004, policy regimes have shifted frequently, and evaluation of the effect of policy regime shifts in Iran’s distributional changes due to these policy regime shifts could be illuminating. In this paper, we’ve established a method which computes the effect of policy regime shifts in households’ and individuals’ incomes. This method is based on a micro simulation framework developed by Bourguignon and Ferreira in 2004; moreover, we benefited from work by Heckman on Sample Selection Bias. Finally, we have compared two successive years on each instance of policy shift. Results of micro-simulation show Iranian distributive policies wouldn’t have expected effects to higher and lower deciles of incomes; in other words, government attempts in equalizing incomes haven’t met their aim.

Suggested Citation

  • Khiabani, Nasser & Maziyaki, Ali, 2008. "Evaluation of the effect of policy regime shifts in Iranian Distributional changes using a Micro Simulation Framework," MPRA Paper 10830, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10830

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    References listed on IDEAS

    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    3. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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    More about this item


    income distribution; micro simulation; Heckman’s method;

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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