Factors Affecting the Difference in Gasoline Prices Inside the Country and FOB Persian Gulf and Effect of this Difference on the Inequality Index of Atkinson's Coefficient in Iran

Varahrami, Vida; Jahantigh, Yeganeh

doi:10.22126/pse.2024.10397.1110

Factors Affecting the Difference in Gasoline Prices Inside the Country and FOB Persian Gulf and Effect of this Difference on the Inequality Index of Atkinson's Coefficient in Iran

Document Type : Original Article

Authors

shahid beheshti university

10.22126/pse.2024.10397.1110

Abstract

As one of the most important policies adopted in Iran, the Law of Targeting Subsidies has goals and consequences that are essential for economic growth and development in the country. The purpose of this study is to measure the actualization of the price of an important energy carrier, such as gasoline, and also to measure the extent of the disappearance of class differences using a better index such as the Atkinson coefficient. In the upcoming study, the Autoregressive distributed lag method to provide more accurate results from a chapter has been used in the period of 2002-2022. The results show that among the three variables of the relative price of gasoline (the ratio of the nominal price of gasoline to the price of other goods and services), the exchange rate and per capita consumption, the two factors of the relative price of gasoline inside the country and the exchange rate are the most explanatory on the price difference of gasoline. In the FOB of the Persian Gulf, it has increased the Atkinson index, which means an increase in income inequality. While the increase in GDP per capita improves the inequality situation in the society and the increase in inflation worsens the inequality situation. In the estimation of the research model, no significant effect of the real wage variable on inequality was observed, and the positive effect of increasing real government spending on reducing inequality was not confirmed in the study period.

Key words: Gasoline Price, Iran, FOB Persian Gulf Gasoline Price, Inequality Index, Atkinson Coefficient, Auto Regression with Distributed Lag (ARDL).

JEL Classification: E54, Q32, E58

Keywords