Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran

Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran

This paper simulates the welfare and poverty impacts of the COVID-19 pandemic in the Islamic Republic of Iran, emphasizing the role of inflation, which lowered the purchasing power of households and had heterogeneous impacts across the distribution...

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Bibliographic Details
Main Authors: Rodriguez, Laura, Atamanov, Aziz
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
INFLATION
POVERTY
INEQUALITY
MICROSIMULATION
DISTRIBUTIONAL IMPACT
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
Online Access:http://documents.worldbank.org/curated/en/288661614696489389/Welfare-and-Distributional-Impacts-of-Inflation-and-the-COVID-19-Outbreak-in-the-Islamic-Republic-of-Iran
http://hdl.handle.net/10986/35207
id okr-10986-35207
recordtype oai_dc
spelling okr-10986-352072022-09-20T00:09:55Z Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran Rodriguez, Laura Atamanov, Aziz INFLATION POVERTY INEQUALITY MICROSIMULATION DISTRIBUTIONAL IMPACT CORONAVIRUS COVID-19 PANDEMIC IMPACT This paper simulates the welfare and poverty impacts of the COVID-19 pandemic in the Islamic Republic of Iran, emphasizing the role of inflation, which lowered the purchasing power of households and had heterogeneous impacts across the distribution and in different regions of the country. First, income losses are estimated with a microsimulation analysis based on shock scenarios. Second, combining data on price changes with expenditure baskets for various groups of households, group-specific price indices are calculated. These are then applied to the post-shock income changes to assess the deterioration of living standards associated with inflation. Poverty substantially increases, by up to 21 percentage points, as a combined result of the fall in household incomes and high inflation through the pandemic. Iranians in the bottom half of the welfare distribution, those working in services and high-contact economic sectors, and those in rural areas are disproportionately affected. 2021-03-04T14:03:33Z 2021-03-04T14:03:33Z 2021-03 Working Paper http://documents.worldbank.org/curated/en/288661614696489389/Welfare-and-Distributional-Impacts-of-Inflation-and-the-COVID-19-Outbreak-in-the-Islamic-Republic-of-Iran http://hdl.handle.net/10986/35207 English Policy Research Working Paper;No. 9558 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Iran, Islamic Republic of
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic INFLATION
POVERTY
INEQUALITY
MICROSIMULATION
DISTRIBUTIONAL IMPACT
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
spellingShingle INFLATION
POVERTY
INEQUALITY
MICROSIMULATION
DISTRIBUTIONAL IMPACT
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
Rodriguez, Laura
Atamanov, Aziz
Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
geographic_facet Middle East and North Africa
Iran, Islamic Republic of
relation Policy Research Working Paper;No. 9558
description This paper simulates the welfare and poverty impacts of the COVID-19 pandemic in the Islamic Republic of Iran, emphasizing the role of inflation, which lowered the purchasing power of households and had heterogeneous impacts across the distribution and in different regions of the country. First, income losses are estimated with a microsimulation analysis based on shock scenarios. Second, combining data on price changes with expenditure baskets for various groups of households, group-specific price indices are calculated. These are then applied to the post-shock income changes to assess the deterioration of living standards associated with inflation. Poverty substantially increases, by up to 21 percentage points, as a combined result of the fall in household incomes and high inflation through the pandemic. Iranians in the bottom half of the welfare distribution, those working in services and high-contact economic sectors, and those in rural areas are disproportionately affected.
format Working Paper
author Rodriguez, Laura
Atamanov, Aziz
author_facet Rodriguez, Laura
Atamanov, Aziz
author_sort Rodriguez, Laura
title Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
title_short Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
title_full Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
title_fullStr Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
title_full_unstemmed Welfare and Distributional Impacts of Inflation and the COVID-19 Outbreak in the Islamic Republic of Iran
title_sort welfare and distributional impacts of inflation and the covid-19 outbreak in the islamic republic of iran
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/288661614696489389/Welfare-and-Distributional-Impacts-of-Inflation-and-the-COVID-19-Outbreak-in-the-Islamic-Republic-of-Iran
http://hdl.handle.net/10986/35207
_version_ 1764482551455416320

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