Tbe Effects of Adjustment Policies on Poverty & Income Distributiott (The case of Iran 1338.137Z)

This paper used a general equilibrium model to evaluate the effects of
Adjustment Polices. The model includes both demand and supply side
equations. Relationships concerning household and government income
are also included in model.
Iterative three-stage least squares method is used-toestimatethe.model:
Then the mode/is used to simulate the effect of sevenaltemative policies
on poverty and income distribution. The results indicate that:
1- Poverty and income inequality increases the most as the result of a
devaluation policy and increases the least as a result of increase in
government expenditure,
2- Postponement of adjustment policies will result in more equitable
distribution of income,
3- Implementation of the first five - year development plan did not
result in a more equitable distribution of income as compared with the
current government policies,
4- Sen, Foster, Greer and Thorbecke indexes indicate that current
government policies have the least effect on increasing poverty level.
the postponement of adjustment policies will result in alleviation of
poverty.