A Separation: The Economics behind the Administrative Area Modifications in Iran
Majid Einian
MPRA Paper from University Library of Munich, Germany
Abstract:
Once in a few years, we witness a new ostan (province) being born out of older ostans in Iran. The number of shahrestans has gone from 316 in 2003 to 429 in 2013. There seems to be an everlasting desire for lower levels of administrative areas to separate and form a new higher level area. Shahrestans want to become ostans, and bakhshs want to become shahrestans. This paper studies the economic effects of becoming a new ostan by looking at the consumption of households. Results show a significant positive effect on the growth of consumption in the separation year or the following year. Becoming the central Shahrestan of the new Ostan does not show positive effects on consumption growth.
Keywords: Administrative Areas; Cohort Pseudo Panel; Household Consumption (search for similar items in EconPapers)
JEL-codes: C21 C23 D73 D74 R11 R23 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-ara and nep-cwa
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96420
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