Household utility and its long-run impressionability from economic shocks

Due to the fact that in recent years, Iran has faced severe fluctuations and shocks from macroeconomic variables, the household utility has changed. Undoubtedly, without studying and researching the effects of these shocks on household utility, appropriate solutions cannot be provided to reduce its adverse consequences. Therefore, in the first stage, this study has extracted the household utility function during the years 1996-2020 and then with the help of the ARDL model has investigated the long-Run effects of macroeconomic variables on it. The results of extracting the utility function show that the utility of the household has decreased during the research period and the welfare of the household has declined. Also, the results showed that the effect of economic growth rate (0.29) and oil prices (0.33) on household utility is significant and positive and the effect of inflation rate (-0.11) on it is negative and significant. Also, the effect of the tax on utility is not significant. Accordingly, given the decline in utility over the past few years as a result of economic shocks and fluctuations, the government needs to pay special attention to this issue