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Analysis of Subsidies on Basic Commodities and Its Distribution among Different Income Deciles (A Case Study of Ilam Province)
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Mohsen Ebrahimi *   , Shaker Mohammadi |
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Abstract: (14434 Views) |
| One of the policies at work in developing countries, and even in developed countries, is to take appropriate supportive policies and providing subsidies, which is currently an important instrument in formulating economic policies towards supporting the needed groups and regulating the performance of different economic sectors. This paper attempts to measure per capita subsidies for basic commodities and its distribution mechanism among different income deciles in Ilam province. After a brief review of the subject, we examine the theoretical framework of this research work. Using the method of final cost, a number of hypotheses will then be tested. Some concluding results and a number of strategic policies constitute the final section of this paper.
The results show that the quantity and value of per capita subsidies on the basic commodities such as cooking oil, rice, sugar and cube sugar in Ilam province in 1381 is approximately equal to the average level of the whole country however, the quantity and value of per capita subsidy for milk in this province, i.e. 5 litres and 3250 Rials, in the said year, is less than the average level for the country as a whole, which amounts to 11.620 litres and 7553 Rials. The per capita subsidies on flour in urban areas, both in quantity and value terms, has been more than the average for the urban areas in the country, though the similar figures for rural areas in Ilam province is less than the rural areas country-wide. The benefits received by the lower 4 income deciles from subsidizing the basic commodities in urban and rural areas in Ilam province (with the exemption of lower grade imported rice) has, in total, been less than the upper four income deciles. |
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| Keywords: Basic Commodities, Per Capita Subsidies, Income Deciles |
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Full-Text [PDF 259 kb]
(11695 Downloads)
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Type of Study: Research |
Subject:
General
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