Abstract
The main aim of this study is to measure direct and indirect income effects of cash subsidies on producing activities, factors of production and institutions’ incomes with the focus on rural and urban household income. An assessment is conducted in the social accounting matrix model using the fixed price multiplier matrix in which the relationship between income injection and income distribution policies is taken into account. Therefore, the 2006 social accounting matrix (prepared by Majlis Research Center in 2012), the population and housing census of Iran and subsidies for a fixed monthly payment are employed as the main data resources. The results show that the income impact of this policy on urban households is stronger than that on rural households. Moreover, service, agriculture, home appliances, food and retail sail sectors get the greatest influence of the policy.
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