Evaluating The Impact of Cash-subsidy on Poverty In Iran

In this study, through the elasticity approach, we tried to evaluate the effects of cash subsidy on poverty reduction. In this regard, after the theoretical arguments about the poverty elasticity to income, Gini Coefficient, and price using the data related to the expenses and incomes of the 14701 urban households from 1389 to 1390, the quantitative value of these elasticity was measured and finally, the effect of paying the cash subsidy on the poverty was calculated based on summing the income effect, inequality and price.  In this study, to measure poverty and the income distribution, foster Greer torbecka and Gini coefficient were used. The results of the study showed that the income elasticity of poverty is -1.25, the inequality elasticity of poverty is and the price elasticity of poverty is 1.25 The findings of the study suggest that unexpectedly, after the subsidies targetization plan, the poverty not only did not decrease but also experienced an 8% increase from 1389 t0 1390.