عنوان مقاله [English]
In this paper, using Kakwani-Son method, price elasticity of poverty is calculated for taxed edible goods in the year 2004. This elasticity shows the total effect of price changes on poverty. The total effect is the sum of redistribution and income effects of price change. In fact, the redistribution effect tells us whether an increase in the price of a commodity hurts the poor more than the rich. Then we calculate the price poverty index for poverty gap ratio and the severity of poverty ratio. This index can be utilized to improve the tax or subsidy system so that social welfare is maximized.
JEL classification: I3, D31, H2