Direct Distribution of Rents and the Resource Curse in Iran: A Micro-econometric Analysis
Mohammad Reza Farzanegan () and
Mohammad Habibpour
MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)
Abstract:
Resource-rich economies and ethnically divided societies are linked to higher income inequality at the macro level. Our goal is to empirically examine the income inequality and welfare effects of the direct distribution of resource rents and subsequent taxation in Iran. We use rich micro survey data covering 140,000 individuals from more than 36,000 Iranian urban and rural households in 2009. Our micro-simulations show that the direct distribution of resource rents among all citizens and the imposition of an additional direct income tax have a significant negative effect on the household GINI index and on poverty. We also examine three alternative policies to the resource dividend (RD) policy. The results indicate that the RD policy is the most successful policy for addressing rents-induced inequality in Iran compared with the alternative policies.
Keywords: resource curse; direct rents distribution; poverty; inequality; household survey; Iran Handle: RePEc:mar:MAGKSE:201425 (search for similar items in EconPapers)
JEL-codes: C15 I30 Q32 Q38 Q43 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:
Forthcoming in
Downloads: (external link)
http://www.uni-marburg.de/fb02/makro/forschung/mag ... -2014_farzanegan.pdf First 201425 (application/pdf)
Related works:
Working Paper: Direct Distribution of Rents and the Resource Curse in Iran: A Micro-econometric Analysis (2014) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201425
Access Statistics for this paper
More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo ().