THE IMPACT OF SELF-TARGETED SUBSIDIES ON SOCIAL WELFARE IN IRAN

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PIRAEE KHOSRO; SEIF BEHROUZ

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Paper Information

Journal: Journal of Tax Research Year:2011 | Volume:NEW SERIES - 18 | Issue:9 (57) Page(s): 61-82

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Information Journal Paper

Title

THE IMPACT OF SELF-TARGETED SUBSIDIES ON SOCIAL WELFARE IN IRAN

Author(s)

PIRAEE KHOSRO | SEIF BEHROUZ | Issue Writer Certificate

Keywords

SELF-TARGETED SUBSIDIESQ2

SOCIAL WELFAREQ2

INCOME DECILESQ2

ATKINSON SOCIAL WELFARE FUNCTIONQ3

INEQUALITY AVERSION PARAMETERQ3

Abstract

Social welfare especially the SOCIAL WELFARE of low income groups has always been important for governments, hence, subsidies are paid on different goods to decrease the prices and as a result, increase purchasing power. However, because of not being targeted, the relatively rich benefit from subsidies more than the poor. Therefore it seems to be necessary to design self-targeted safety net programs. This research aims at investigating the welfare consequences of SELF-TARGETED SUBSIDIES and to answer this question: what is the impact of transferring one unit of subsidies paid on subsidized goods mostly used by the rich to non-subsidized goods mostly used by the poor on welfare-improving.For this purpose, we calculated the change in SOCIAL WELFARE caused by SELF-TARGETED SUBSIDIES. The results show that SELF-TARGETED SUBSIDIES increase SOCIAL WELFARE. The extent of this increase is negatively related to INEQUALITY AVERSION PARAMETER, while positively related to the share of non-subsidized goods in low INCOME DECILES budget.

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APA: Copy

PIRAEE, KHOSRO, & SEIF, BEHROUZ. (2011). THE IMPACT OF SELF-TARGETED SUBSIDIES ON SOCIAL WELFARE IN IRAN. TAX JOURNAL, NEW SERIES - 18(9 (57)), 61-82. SID. https://sid.ir/paper/89720/en

Vancouver: Copy

PIRAEE KHOSRO, SEIF BEHROUZ. THE IMPACT OF SELF-TARGETED SUBSIDIES ON SOCIAL WELFARE IN IRAN. TAX JOURNAL[Internet]. 2011;NEW SERIES - 18(9 (57)):61-82. Available from: https://sid.ir/paper/89720/en

IEEE: Copy

KHOSRO PIRAEE, and BEHROUZ SEIF, “THE IMPACT OF SELF-TARGETED SUBSIDIES ON SOCIAL WELFARE IN IRAN,” TAX JOURNAL, vol. NEW SERIES - 18, no. 9 (57), pp. 61–82, 2011, [Online]. Available: https://sid.ir/paper/89720/en

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