Majid Sameti; Saeedeh Izadi
Volume 19, Issue 59 , July 2014, , Pages 117-152
Abstract
Price change is the most important element in explaining the change of consumer welfare. Increase in prices decrease real revenue of consumers and by effect on consumer’s purchasing power, influence their poverty and welfare. Thing that helps governments in suitable policy-making ...
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Price change is the most important element in explaining the change of consumer welfare. Increase in prices decrease real revenue of consumers and by effect on consumer’s purchasing power, influence their poverty and welfare. Thing that helps governments in suitable policy-making for reducing poverty and protection of consumer welfare, is awareness from welfare loss resulting from changing in prices. In this paper, amount of welfare loss after increase in prices for various income deciles of urban households of Isfahan, is computed. For this, linear expenditure system by seemingly unrelated regression method is estimated by using data of income and expenditure of urban households during 2004-2011. And then amount of supernumerary expenditures, marginal propensity to consume out of supernumerary expenditures and the mental poverty line are computed. Compensation variations and equivalent variations in each of eight groups of commodity and service and also in each of ten income deciles are computed. Results show that increase in prices of foods, dwelling, transportation, miscellaneous commodity, health and treatment, clothes and shoes, furnitures, entertainments and education respestively lead to most welfare loss.
Mohammad Reza Hosseini; Ahmad Jafari Samimi
Volume 14, Issue 42 , April 2010, , Pages 101-122
Abstract
The index of economic well-being (IEWB) covering consumption, wealth, income distribution and economic security is a suitable composite index measuring welfare, growth and development at both partial as well as comprehensive levels .In this study the composite index has been proposed for the first time ...
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The index of economic well-being (IEWB) covering consumption, wealth, income distribution and economic security is a suitable composite index measuring welfare, growth and development at both partial as well as comprehensive levels .In this study the composite index has been proposed for the first time in Iran and the welfare trend has also been measured for the available data period 1368-1382. In order to aggregate variables and welfare dimensions we have normalized data using the first year of the first development plan (1368) as the base year. In addition, to estimate the trend of total economic welfare index we have used a uniform weight (0.25) table for each of the four dimensions. The results show that the economic security and consumption were respectively the most important dimensions of economic welfare in Iran .Also, comparing the absolute as well as the relative changes in per capita income and IEWB we found that using per capita income as an index will overestimate the level of economic welfare in Iran.
