IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v34y2012i1p99-111.html
   My bibliography  Save this article

Illusion therapy: How to impose an economic shock without social pain

Author

Listed:
  • Atashbar, Tohid

Abstract

This study attempts to demonstrate how a government launched an economic structural reform plan that previous governments, fearing a serious social backlash, had been unable to implement over the course of 30 years. The findings show that the Iranian government used “illusion therapy”, a package of econo-psychological techniques, to implement IMF-backed “shock” economic reforms to long-standing energy and food subsidies, without facing the expected social reaction.

Suggested Citation

  • Atashbar, Tohid, 2012. "Illusion therapy: How to impose an economic shock without social pain," Journal of Policy Modeling, Elsevier, vol. 34(1), pages 99-111.
    • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:1:p:99-111
    DOI: 10.1016/j.jpolmod.2011.09.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893811001219
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2011.09.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
    2. Carter, Colin & Chadee, Doren & Darko, Kwame, 1999. "Are Subsidies to be Blamed? A Reexamination of U.S. Countervailing Duty on Hog Imports From Canada," Journal of Policy Modeling, Elsevier, vol. 21(7), pages 823-830, December.
    3. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    4. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    5. Tuck, L. & Lindert, K., 1996. "From Universal Food Subsidies to a Self-Targeted Program: A Case Study in Tunisian Reform," World Bank - Discussion Papers 351, World Bank.
    6. Thomas L. Saaty, 2005. "The Analytic Hierarchy and Analytic Network Processes for the Measurement of Intangible Criteria and for Decision-Making," International Series in Operations Research & Management Science, in: Multiple Criteria Decision Analysis: State of the Art Surveys, chapter 0, pages 345-405, Springer.
    7. JosÉ Figueira & Salvatore Greco & Matthias Ehrogott, 2005. "Multiple Criteria Decision Analysis: State of the Art Surveys," International Series in Operations Research and Management Science, Springer, number 978-0-387-23081-8, April.
    8. Jean-Luc Migue & Richard Marceau, 1993. "Pollution Taxes, Subsidies, and Rent Seeking," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 355-365, May.
    9. Bigman, David, 1987. "Targeted subsidy programs under instability: A simulation and an illustration for Pakistan," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 483-501.
    10. Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
    11. Rodney Fort, 2004. "Subsidies as incentive mechanisms in sports," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 95-102.
    12. Beynon, Malcolm, 2002. "An analysis of distributions of priority values from alternative comparison scales within AHP," European Journal of Operational Research, Elsevier, vol. 140(1), pages 104-117, July.
    13. Dogruel, Fatma & Dogruel, A. Suut & Yeldan, Erinc, 2003. "Macroeconomics of Turkey's agricultural reforms: an intertemporal computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 617-637, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seyed Habibollah Mosavi, 2016. "Energy price reform and food markets: the case of bread supply chain in Iran," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 169-179, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stiglitz, Joseph E., 2002. "New perspectives on public finance: recent achievements and future challenges," Journal of Public Economics, Elsevier, vol. 86(3), pages 341-360, December.
    2. Carayannis, Elias G. & Goletsis, Yorgos & Grigoroudis, Evangelos, 2018. "Composite innovation metrics: MCDA and the Quadruple Innovation Helix framework," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 4-17.
    3. Bosmans, Kristof & Decancq, Koen & Ooghe, Erwin, 2018. "Who's afraid of aggregating money metrics?," Theoretical Economics, Econometric Society, vol. 13(2), May.
    4. Angilella, Silvia & Giarlotta, Alfio, 2009. "Implementations of PACMAN," European Journal of Operational Research, Elsevier, vol. 194(2), pages 474-495, April.
    5. De Brucker, Klaas & Macharis, Cathy & Verbeke, Alain, 2013. "Multi-criteria analysis and the resolution of sustainable development dilemmas: A stakeholder management approach," European Journal of Operational Research, Elsevier, vol. 224(1), pages 122-131.
    6. Angilella, Silvia & Greco, Salvatore & Matarazzo, Benedetto, 2010. "Non-additive robust ordinal regression: A multiple criteria decision model based on the Choquet integral," European Journal of Operational Research, Elsevier, vol. 201(1), pages 277-288, February.
    7. Hassan, Mohammad Nurul & Hawas, Yaser E. & Ahmed, Kamran, 2013. "A multi-dimensional framework for evaluating the transit service performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 47-61.
    8. Yael Grushka-Cockayne & Bert De Reyck, 2009. "Towards a Single European Sky," Interfaces, INFORMS, vol. 39(5), pages 400-414, October.
    9. Greco, Salvatore & Mousseau, Vincent & Slowinski, Roman, 2008. "Ordinal regression revisited: Multiple criteria ranking using a set of additive value functions," European Journal of Operational Research, Elsevier, vol. 191(2), pages 416-436, December.
    10. József Temesi, 2011. "Pairwise comparison matrices and the error-free property of the decision maker," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(2), pages 239-249, June.
    11. Hatami-Marbini, Adel & Tavana, Madjid, 2011. "An extension of the Electre I method for group decision-making under a fuzzy environment," Omega, Elsevier, vol. 39(4), pages 373-386, August.
    12. Chinh Luu & Jason Meding & Sittimont Kanjanabootra, 2018. "Assessing flood hazard using flood marks and analytic hierarchy process approach: a case study for the 2013 flood event in Quang Nam, Vietnam," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 90(3), pages 1031-1050, February.
    13. Salvatore Corrente & Michael Doumpos & Salvatore Greco & Roman Słowiński & Constantin Zopounidis, 2017. "Multiple criteria hierarchy process for sorting problems based on ordinal regression with additive value functions," Annals of Operations Research, Springer, vol. 251(1), pages 117-139, April.
    14. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May.
    15. Schneider, Frank, 2008. "Multiple criteria decision making in application layer networks," Bayreuth Reports on Information Systems Management 36, University of Bayreuth, Chair of Information Systems Management.
    16. Eric L. Sevigny & Michaela Saisana, 2016. "Measuring Interstate Variations in the Consequences of Illegal Drugs: A Composite Indicator Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 501-529, September.
    17. Figueira, José Rui & Greco, Salvatore & Roy, Bernard, 2009. "ELECTRE methods with interaction between criteria: An extension of the concordance index," European Journal of Operational Research, Elsevier, vol. 199(2), pages 478-495, December.
    18. Figueira, José Rui & Greco, Salvatore & Slowinski, Roman, 2009. "Building a set of additive value functions representing a reference preorder and intensities of preference: GRIP method," European Journal of Operational Research, Elsevier, vol. 195(2), pages 460-486, June.
    19. Bana e Costa, Carlos A. & Vansnick, Jean-Claude, 2008. "A critical analysis of the eigenvalue method used to derive priorities in AHP," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1422-1428, June.
    20. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(2), pages 165-190, April.

    More about this item

    Keywords

    Illusion therapy; Shock therapy; Iran economy; Structural reform;
    All these keywords.

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:34:y:2012:i:1:p:99-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.