International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online)

Targeting Subsidies Considering the Applied Models in Iran
Nasrollah Maghsoudi, Fateme Tohidy Ardahaey

Iran's economy has suffered from chronic problems for decades and despite previous governments acknowledged those problems, no serious measurement was taken for economic reform. This remained unsolved until the ninth government, being aware of the basic problems of the economy in the country, designed a basic plan for economic reform a part of which was the comprehensive plan to reform subsidies payment. The project of targeting subsidies, which was the most important programs among the government's economic programs for 2010, dealt with people. The major advantage of targeting subsidies was correcting relative prices which was an important guide to individual consumers for deciding which type of commodities to use. Of other major advantages of this plan were social objectives such as an expected change in the distribution pattern of subsidies. In this paper it is tried to study various viewpoints and models of targeted subsidies in Iran. In this respect, the overall shape of the experimental and scientific models of targeted subsidies studied in Iran will be reviewed.

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