Soheila Parvin; Abass Shakeri; Samaneh Naseri
Abstract
Economic sanctions are a low-cost tool that replaces military action with a high economic, political and human cost. The severity of the effects of sanctions depends on the degree of dependence of the target economy on the outside world, the cooperation of the international community with the ones ...
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Economic sanctions are a low-cost tool that replaces military action with a high economic, political and human cost. The severity of the effects of sanctions depends on the degree of dependence of the target economy on the outside world, the cooperation of the international community with the ones imposing sanctions, and the potential ability to substitute domestic production with imports. If domestic supply is sufficiently resilient, sanctions act, such as an import substitution policy, can lead to higher growth and more employment. Otherwise, sanctions will act as a lack of domestic supply. This study evaluates the welfare effects of sanctions on basic items - whose rising prices affect living standards. We use a multiple choice model and logit function, the income and cost effects of sanctions as well as the impact of exchange rate changes on the price of basic goods on the welfare standard and the probability of households joining the poor group are considered. The results show that, due to the inelastic domestic supply, the possibility of substituting imports is limited, so the cost effects are dominant for the year 2019, in the effective exchange rate scenario, poverty growth is estimated at %2.2 (about 1828 thousand people, and in the official exchange rate scenario, poverty growth is 3.1 percent (and about 2575 thousand People have joined the poor group).
soheila parvin; mahnoosh abdollah milani; Vahid Rezaei
Abstract
Supportive policies that lead to significant relative price changes have widespread impact on income distribution that cannot be considered by adjusting expenditures with the consumer price index. While households have different consumption patterns in different income deciles, the Consumer Price Index ...
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Supportive policies that lead to significant relative price changes have widespread impact on income distribution that cannot be considered by adjusting expenditures with the consumer price index. While households have different consumption patterns in different income deciles, the Consumer Price Index (CPI) measures changes in prices based on the pattern of consumption in the average-income households. To overcome the issue, this paper examines the impact of relative price changes on distribution of real income (real expenditure) based on the HSPI Index, which is calculated using the weights of goods in each household’s basket. The period under study is 2007-2015. To measure inequality, the Gini coefficient is used based on Ogwang method. The results show that in periods that price of foods increase more than other categories, income inequality is the more when calculated, respectively, based on Household Specific Price Index (HSPI) and Consumer Price Index (CPI) than Gini coefficient based on nominal expenditures. Because of higher share of foods in consumption basket of low-income households, higher relative price of this category leads to worsening of income distribution and loss of welfare for low-income class.
Mahnoush Abdollah Milani; Soheila Parvin; kosar seyedi
Abstract
One of the important objectives of policymakers in a society is reduction of income inequality. Taxes, as source of stable income for government, are the most important tools for adjusting income inequality. An efficient tax system in the form of progressive taxation can lead to improved income distribution. ...
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One of the important objectives of policymakers in a society is reduction of income inequality. Taxes, as source of stable income for government, are the most important tools for adjusting income inequality. An efficient tax system in the form of progressive taxation can lead to improved income distribution. This paper evaluates the impact of progressive income tax on income inequality in 30 provinces during the period 2005 - 2013 in Iran. For this purpose, the average income tax rate is calculated for each income decile and its effect on Gini coefficient has been tested while controlling for other independent variables which include the share of services and industry sectors in GDP and per capita income growth in each province. The empirical method of this study was based on panel data approach for which we applied Generalized Method of Moments (GMM) to estimate the dynamic equation. The results show that although the income tax is progressive in Iran, but the tax system has failed to reduce income inequality.
soheila parvin
Volume 15, Issue 56 , April 2015, , Pages 1-42
Abstract
Kuznets's hypothesis has been questioned even in developed countries these days. The measurement of income distribution and middle-class in the world economy shows that polarization of income distribution could limit economic growth, and cause fundamental changes in global economy.Three stylized facts ...
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Kuznets's hypothesis has been questioned even in developed countries these days. The measurement of income distribution and middle-class in the world economy shows that polarization of income distribution could limit economic growth, and cause fundamental changes in global economy.Three stylized facts emerge from review of experimental studies on the effects of inequality on growth and development: Higher inequality is more likely to harm growth; (1) through interaction with incomplete and underdeveloped markets for capital and information; (2) by discouraging the evolution of the economic and political institutions associated with accountable government (which in turn enable a market environment conducive to investment and growth); and (3) by undermining the civic and social life that sustains effective collective decision-making. This paper reviews the relation between growth and middle class measure around the world economy and Iran. Also has pointed to the channels through which the middle class may matter for economic growth in Iran. Determinants of the size and the growth of the middle class are also examined, by using relative and absolute middle class measures. The findings show that a larger middle class influences growth through higher levels of human capital investment. A relative middle class measure has more meaningful effect. The larger the government, the higher level of urbanization, the more openness, the smaller services ratio, the greater industry value added ratio to agriculture value added, as structural indexes are all affected with middle class.
