The response of income inequality to positive oil rents shocks in Iran: Implications for the post-sanction period
Mohammad Reza Farzanegan () and
MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)
We study the short and long run responses of income inequality to the positive oil and gas rents per capita shocks in Iran from 1973 to 2012. Using vector autoregression (VAR)-based impulse response functions, we find a positive and statistically significant response of income inequality to oil rents booms within 4 years after the shock. The Autoregressive-Distributed Lag (ARDL) results show that a 10 percent increase in oil and gas rents per capita leads to 1.1 percent increase in income inequality in the long run. The results are robust after controlling for income-distribution channels in Iran. Our analysis can help policy makers to evaluate and accommodate the possible positive or negative effects of lifting sanctions on inequalities in Iran.
Keywords: oil rents; inequality; VAR; ARDL; sanctions; Iran (search for similar items in EconPapers)
JEL-codes: Q33 Q38 D63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-ene and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.uni-marburg.de/fb02/makro/forschung/mag ... -2017_farzanegan.pdf First 201733 (application/pdf)
Working Paper: The response of income inequality to positive oil rents shocks in Iran: Implications for the post-sanction period (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201733
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 ().