Proxy Means Tests for Targeting Subsidies Scheme in Iran

author

Abstract:

In this paper I develop a Proxy Means Tests (PMT) model and examine several targeting lines based on 2008 household survey data to identify beneficiaries for a targeting subsidy scheme in Iran. Based on the findings of this study, setting a cut-off percentile of 40% is expected to provide compensation for almost 70 percent of the poorest households. This will result in the highest accuracy mainly in rural areas where poverty is much more severe than elsewhere in the country. Substituting the current scheme which covers almost all households in Iran with a targeting scheme based on the results of the PMT model will allow for either transferring larger amount of money to the extreme poor at the current budget, or reducing the government expenditure in the form of repayment after removing subsidies on fuel and energy.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

proxy means tests for targeting subsidies scheme in iran

in this paper i develop a proxy means tests (pmt) model and examine several targeting lines based on 2008 household survey data to identify beneficiaries for a targeting subsidy scheme in iran. based on the findings of this study, setting a cut-off percentile of 40% is expected to provide compensation for almost 70 percent of the poorest households. this will result in the highest accuracy main...

full text

Weighing what’s practical: proxy means tests for targeting food subsidies in Egypt

Despite achieving a significant cost reduction over the past two decades, the absolute cost of food subsidies in Egypt is still high relative to the benefits received by the poor. There is scope for better targeting these food subsidies, in particular for targeting cooking oil and sugar ration cards, both because reforms in this area are perceived to be far less politically sensitive than adjus...

full text

An Analysis of the Inflationary Effect of Subsidies Targeting Scheme of Iran: Flow-of-Funds Approach

At the beginning of 2011, the Islamic Republic of Iran underwent a Scheme called “Subsidies Targeting”. This scheme meant to replace subsidies on goods and services especially energy, which had kept prices low for decades, with a monthly refund to every resident as a compensation plan. Considering the magnitude of price change up to ten times and the important role of Energy carriers in product...

full text

Choosing the best method for targeting of subsidies using fuzzy multi-criteria decision

The subsidy is one of the most important economic tools and the government’s supportive policies for the protection of low-income groups. The inefficiency of the subsidy distribution puts a heavy cost burden on the government and also create injustice. Subsidies are aimed to achieve social justice, welfare, and fair income distribution. Therefore, the necessity of paying subsidies and support f...

full text

An efficient Multi-proxy system for Proxy signature scheme

In the last few years, the traditonal certificate-based setting is replaced by the ID-based setting. Proxy signatures allow the delegation of signing rights from an original user to its proxy agent. Normally, the original signer can authorize a group of proxy agents to sign any document on its behalf. Currently in our study, we have proposed an ID-based multi-proxy signature scheme, from biline...

full text

Tests for Paired Means

The one-sample paired t-test may be used to test whether the mean difference of two populations is greater than, less than, or not equal to a specific value. Because the t distribution is used to calculate critical values for the test, this test is often called the paired t-test. If the standard deviation of the differences is known, the normal distribution is used instead of the t distribution...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 2  issue 2

pages  25- 46

publication date 2013-09-23

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023