This paper provides a new methodology that decomposes the change in poverty in to growth and redistribution components. Then, it presents unempirical application of the proposed methodology to recent data on consumption in rural and urban areas in Iran conducted by Statistical Centre of Iran (SCI) in. 1989 and 1994 (the initial and the year later the final year of the Islamic Republic’s first five-year plan). I found that both “pure growth” and “redistribution” components directly contributed to the change in poverty.
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