Hossein Tavakolian; Mehdi Sarem; Javad Taherpoor; Mahnoosh Abdollah Milani
Abstract
This paper models the assets and liabilities of the Social Security Fund in Iran. The fund's financial position in practice is influenced by the population dynamics between two generations of employed and retired people, focusing on four important characteristics: the premium rate and pension ...
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This paper models the assets and liabilities of the Social Security Fund in Iran. The fund's financial position in practice is influenced by the population dynamics between two generations of employed and retired people, focusing on four important characteristics: the premium rate and pension benefits of the working and retired generation, the two-generation employed and retired population pyramid, the employment generation period and the retirement period. In this study, an overlapping generation model is designed to show the dependence of the stability of the fund on the generational population and the transitions between generations taking into account such characteristics. The simulation results show that although the ratio of assets to liabilities can be potentially high, the gap between assets and liabilities of the fund is so high that any of the proposed policies alone cannot close the gap and ensure its stability. Therefore, policy implication s to stabilize the fund's assets and liabilities can be proposed in two scenarios. The similarity of both scenarios is that the government first pays its share of the insurance and secondly increases the premium rate to 10%, with the retirement pension being reduced by 50% in the first scenario and 10% in the second scenario. The results of the analysis show that the improvement of the fund stabilization is mainly dependent on the decrease in retirement pension, which can be stabilized in a certain time horizon.
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.
Leila Sadat Zafaranchi; Teymour Mohammadi; Hasan Ta’ee; mahnoosh abdollah milani
Abstract
Nowadays explaining the behavior of household members is not considered as a neglected black box, and interactions between household members, can influence household consumption, employment and thus its welfare. Applying unitary model, the goal of this research is to estimate and study labor supply functions ...
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Nowadays explaining the behavior of household members is not considered as a neglected black box, and interactions between household members, can influence household consumption, employment and thus its welfare. Applying unitary model, the goal of this research is to estimate and study labor supply functions of dual-earner couples who have non-labor income, using Iranian rural-urban families' cost-expenditure data in year 2013. Supposing wage variable is endogenous, the estimation procedure is based on generalized method of moments. Our findings show that in the pattern of married women's labor supply, inverse of Mill's ratio is negative and statistically significant. So, computing this variable by Heckman's Two Step Model results in consistency of results. The elasticity of own wage labor supply of both couples is positive and statistically significant. From this point of view, the couple's labor supply curve, in studied sample, has standard shape. Studying cross wage elasticity, shows that couples' leisure time are complementary. In line with theoretical base, a rise in non-labor income has negative and statistically significant effect on couples' labor supply hours.
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.
Mahnoush Abdolah Milani; teymour mohammadi; solaleh tavassoli
Abstract
In the past few decades, the rapid growth of health expenditure among countries and considerable differences between per capita health expenditures in different countries, have led to extensive studies about determinants of health expenditures. The aim of this study is to identify such factors across ...
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In the past few decades, the rapid growth of health expenditure among countries and considerable differences between per capita health expenditures in different countries, have led to extensive studies about determinants of health expenditures. The aim of this study is to identify such factors across different countries which can be put into distinct income groups. For this purpose, panel data regression technique for 148 countries from 1995 to 2013 with fixed effects model was used. The results show that, in contrast to previous studies which use macro data analysis, the effect of population ageing in upper-middle- and high-income countries, which face the greatest rate of population ageing, on health expenditures was shown to be positive at a significant level. Income as being not the sole factor associated with health expenditure, our results show that life expectation and the share of young population (under 14) are among important factors. Another driver of health expenditure was revealed to be the total government expenditure as a share of GDP that was insignificant only for low income countries. This observation might reflect the trade off in domestic health expenditures made by the low-income countries as a result of receiving international aids. The income elasticity for all groups was below unity and suggestive of health care to be a necessity good in all countries.
