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Regional Equality of Opportunities and Income: A General Equilibrium Modeling for Iran

Author

Listed:
  • Mortazavi Kakhaki, Morteza
  • Haqiqi, Iman
  • Mahdavi Adeli, Mohammad

Abstract

We will evaluate the impacts of redistribution of opportunities [access to public services] on the inequality of income in Iran provinces. The results of the General Equilibrium model show that equal opportunities through equalizing educational opportunities can significantly improve the income distribution and reduce inter-provincial Gini coefficient of income in the long run. According to our findings if the equality of opportunities is met، the income distribution will improve and inter-provincial Gini coefficient will reduce from 0.25 to 0.11.

Suggested Citation

  • Mortazavi Kakhaki, Morteza & Haqiqi, Iman & Mahdavi Adeli, Mohammad, 2013. "Regional Equality of Opportunities and Income: A General Equilibrium Modeling for Iran," MPRA Paper 95822, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95822
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    References listed on IDEAS

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    1. John E. Roemer, 2014. "Economic Development as Opportunity Equalization," The World Bank Economic Review, World Bank, vol. 28(2), pages 189-209.
    2. Asghar, Shahmoradi & Iman, Haqiqi & Zahedi, Raziyeh, 2011. "Impact Analysis of Energy Price Reform and Cash Subsidy Payment in Iran: A CGE Approach," MPRA Paper 95809, University Library of Munich, Germany.
    3. Haqiqi, Iman & Mortazavi Kakhaki, Morteza, 2012. "The Impact of Redistribution of Opportunities on Income Inequality: A CGE Approach," MPRA Paper 95819, University Library of Munich, Germany.
    4. Weymark, John A., 1981. "Generalized gini inequality indices," Mathematical Social Sciences, Elsevier, vol. 1(4), pages 409-430, August.
    5. Vitorocco Peragine, 1999. "The Distribution and Redistribution of Opportunity," Journal of Economic Surveys, Wiley Blackwell, vol. 13(1), pages 37-70, February.
    6. Kranich, Laurence, 1996. "Equitable Opportunities: An Axiomatic Approach," Journal of Economic Theory, Elsevier, vol. 71(1), pages 131-147, October.
    7. Davood, Manzoor & Asghar, Shahmoradi & Iman, Haqiqi, 2010. "An Assessment of the Impact of Reducing Implicit and Explicit Energy Subsidies in Iran; Using a Computable General Equilibrium Model Based on a Modified Micro Consistent Matrix," MPRA Paper 95808, University Library of Munich, Germany.
    8. Ok, Efe A., 1997. "On Opportunity Inequality Measurement," Journal of Economic Theory, Elsevier, vol. 77(2), pages 300-329, December.
    9. John Weymark, 2003. "Generalized Gini Indices of Equality of Opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 5-24, April.
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    11. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
    12. Thomas F. Rutherford & D. Sigrist, 2010. "What if? Policy analysis with calibrated equilibrium models," CEPE Working paper series 10-72, CEPE Center for Energy Policy and Economics, ETH Zurich.
    13. Böhringer, Christoph & Rutherford, Thomos F., 2009. "Integrated assessment of energy policies: Decomposing top-down and bottom-up," Journal of Economic Dynamics and Control, Elsevier, vol. 33(9), pages 1648-1661, September.
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    15. Milorad Kovacevic, 2010. "Measurement of Inequality In Human Development - A Review," Human Development Research Papers (2009 to present) HDRP-2010-35, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
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    Cited by:

    1. Haqiqi, Iman & Yasharel, Sepideh, 2018. "Removing Fossil Fuel Subsidies to Help the Poor," MPRA Paper 95907, University Library of Munich, Germany.
    2. Haqiqi, Iman & Manzoor, Davood, 2012. "Environmental Impacts of Phasing out Energy Subsidies," MPRA Paper 95688, University Library of Munich, Germany, revised 2016.
    3. Haqiqi, Iman & Bahalou, Marziyeh & Hamidi, Razieh, 2014. "Measurement and Evaluation of Equality of Opportunity: A Numerical Look at Education, Health, and Income Inequality," MPRA Paper 95866, University Library of Munich, Germany.

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    More about this item

    Keywords

    Equality of opportunities; General equilibrium; spatial Gini coefficient; regional Gini;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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