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Poverty Decomposition Based on Iranian Households' Socioeconomic Characteristics: Integrated Micro and Macro Approach

Author

Listed:
  • Nili , Farhad

    (Monetary and Banking Research Institute (MBRI), Central Bank of the Islamic Republic of Iran (CBI))

  • Poursadeghi Haghighat , Sohail

    (Graduate School of Management and Economics, Sharif University of Technology)

Abstract

Comparison of the private consumption extracted from the Household Budget Survey and the National Accounts in Iran reveals that not only the latter always exceeds the former, but also the gap between them has increased over time. In this paper we propose a method to eliminate the discrepancy between these two sources. We integrate the micro and macro data and compare the poverty indicators in Iran for 1991-2007. Then we decompose the poverty changes over time according to socioeconomic characteristics of Iranian households into the exact sum of three independent components, i.e. growth, inequality and population effect. Results show that the total poverty changes in Iran in the previous years have been most affected by the growth effect and least affected by the population effect. The growth and overall effects have always had the same direction in the previous years in Iran.

Suggested Citation

  • Nili , Farhad & Poursadeghi Haghighat , Sohail, 2011. "Poverty Decomposition Based on Iranian Households' Socioeconomic Characteristics: Integrated Micro and Macro Approach," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 6(1), pages 75-106, October.
    • Handle: RePEc:mbr:jmonec:v:6:y:2011:i:1:p:75-106
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    Cited by:

    1. World Bank Group, 2016. "Iran Economic Monitor, Fall 2016," World Bank Publications - Reports 25865, The World Bank Group.

    More about this item

    Keywords

    Poverty Decomposition; Integration of Micro and Macro Data; Growth Effect; Inequality Effect; Population Effect;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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