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Oil Revenues Shocks and Inequality in Iran

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  • Mohammad Reza Farzanegan

    (Philipps-University Marburg)

  • Tim Krieger

Abstract

We study the responses of income inequality to positive per capita oil and gas revenues shocks in Iran. Using historical data from 1973 to 2016 and vector autoregression (VAR) -based impulse response functions, we find a positive and statistically significant response of income inequality to oil booms. Our analysis can help policymakers evaluate and accommodate the possible positive or negative effects on inequality in Iran resulting from the 2016 lifting of the embargo against the country.

Suggested Citation

  • Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Revenues Shocks and Inequality in Iran," Working Papers 1226, Economic Research Forum, revised 18 Sep 2018.
    • Handle: RePEc:erg:wpaper:1226
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