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

The Straw that Could Break the Camel's Back: An Economic Analysis of Subsidies in the Iranian Economy

Listed author(s):
  • Dadkhah, Kamran
  • Zangeneh, Hamid

Subsidies and welfare payments play a large role in the Iranian economy. The numbers that appear in the government budget under welfare or subsidy payments are only the tip of the iceberg. A considerable part of subsidies paid by the Iranian government are hidden and do not appear in the budget. The government provides to the populace a number of goods and services at prices below their cost or far below prices prevailing in international markets. All said, the Iranian economy is crisscrossed with a network of hidden and visible subsidies that threaten the long-term health of the economy that the President himself has referred to as sick. To be sure, extending a social safety net to individuals and families who are economically vulnerable is a laudable act, and ranks high among the tasks of a modern government. Nevertheless, such undertakings have many economic implications. For a policy to be viable in the long run, all costs, apparent or hidden, and all tradeoffs should be considered. The objective of this paper is to evaluate the economic ramifications of Iran’s system of subsidies and President Khatami’s welfare proposal.

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:
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26284.

in new window

Date of creation: 2000
Publication status: Published in Journal of Iranian Research and Analysis 1.16(2000): pp. 123-134
Handle: RePEc:pra:mprapa:26284
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page:

More information through EDIRC

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:pra:mprapa:26284. 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: (Joachim Winter)

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.