Targeting Subsidies Considering the Applied Models in Iran

International Journal of Business and Social Science, Vol. 3, No. 7, April 2012

7 Pages Posted: 23 Jun 2014 Last revised: 24 Jun 2014

See all articles by Nasrollah Maghsoudi

Nasrollah Maghsoudi

Islamic Azad University - Islamshahr Branch

Fateme Tohidy Ardahaey

Science and Research Branch, Islamic Azad University, Tehran, Iran

Date Written: April 10, 2014

Abstract

Iran's economy has suffered from chronic problems for decades and despite previous governments acknowledged those problems, no serious measurement was taken for economic reform. This remained unsolved until the ninth government, being aware of the basic problems of the economy in the country, designed a basic plan for economic reform a part of which was the comprehensive plan to reform subsidies payment. The project of targeting subsidies, which was the most important programs among the government's economic programs for 2010, dealt with people. The major advantage of targeting subsidies was correcting relative prices which was an important guide to individual consumers for deciding which type of commodities to use. Of other major advantages of this plan were social objectives such as an expected change in the distribution pattern of subsidies. In this paper it is tried to study various viewpoints and models of targeted subsidies in Iran. In this respect, the overall shape of the experimental and scientific models of targeted subsidies studied in Iran will be reviewed.

Keywords: subsidy, Iran, model, targeted, applicatory

JEL Classification: M40

Suggested Citation

Maghsoudi, Nasrollah and Tohidy Ardahaey, Fateme, Targeting Subsidies Considering the Applied Models in Iran (April 10, 2014). International Journal of Business and Social Science, Vol. 3, No. 7, April 2012. Available at SSRN: https://ssrn.com/abstract=2457392

Nasrollah Maghsoudi

Islamic Azad University - Islamshahr Branch ( email )

Tehran
Iran

Fateme Tohidy Ardahaey (Contact Author)

Science and Research Branch, Islamic Azad University, Tehran, Iran ( email )

Tehran
Iran

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