The Impact of Unconditional Cash Subsidies on the Iranian Households Cigarette Consumption by Using Dose-Response Function

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Shahbazian, Arin | 2015

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 48113 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Keshavarz Haddad, Gholamreza
Abstract:
This study aims to estimate impact of the energy subsidy reform on household’s cigarette consumption in urban and rural areas in 2010-2012. According to the household size,income generated from receiving cash subsidies is different across families. So to measure the household’s response to different levels of subsidies on consumers spending, the doseresponse function is used. Our main contribution is estimation and calculation of cigarette spending reaction to the unconditional cash transfer by dose of the subsidy that they received, while the previous works in this literature have used the well know binary variable of being on the exposure of program. In terms of being on the exposure of program or not, household’s are divided into two control and treatment groups. Then, with the difference in difference regression (Ordinary Least Squares and Heckman sample selection) and the doseresponse function estimation, we asses the effect of the policy on their cigarette consumption per month. The results show that the subsidy policy reform has no significant effect on cigarette consumption household’s in urban and rural areas
Keywords:
Households ; Cigarette Consumption ; Energy Subside ; Subsidy Treatment Policy ; Policy Effect ; Dose Response Function

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