The Impact of Poverty on Households Food and Non-Food Consumption Patterns in Iran: Evidence from Difference in Difference Models

Document Type : Research Paper

Authors

Department of Theoretical Economics, Faculty of Economics, University of Allameh Tabataba’i, Tehran, Iran.

Abstract

In recent years, poverty has emerged as a global challenge and a critical barrier to development, significantly expanding worldwide. In Iran, despite constitutional mandates aimed at poverty reduction, this issue has continued to escalate, affecting household consumption patterns. However, the quantitative impact of poverty on the consumption behaviors of Iranian households has yet to be analyzed. The main objective of this study was to examine the effects of poverty on the consumption patterns of food and non-food sub-groups among urban and rural households in Iran during 2018 and 2019. Using the Difference-in-Differences, we analyzed the impact of poverty on Iranian household's consumption patterns. We find a significant negative effect of poverty on expenditures of vegetables, fruits, meat, health, transportation, and clothing sub-groups in Iran. In contrast, poverty had a significant positive effect on the communication sub-group's expenditures. These results underscore the complex relationship between poverty and Iranian household consumption behaviors, highlighting the need for targeted policy interventions to mitigate the adverse effects of poverty on household consumption patterns and welfare.

Keywords

Main Subjects

References

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Journal of Economic Research (Tahghighat- E- Eghtesadi)
Volume 59, Issue 4
March 2025
Pages 640-676

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History

  • Receive Date: 15 April 2024
  • Revise Date: 15 March 2025
  • Accept Date: 04 May 2025

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