Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/174329 
Year of Publication: 
2017
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 33-2017
Publisher: 
Philipps-University Marburg, School of Business and Economics, Marburg
Abstract: 
We study the short and long run responses of income inequality to the positive oil and gas rents per capita shocks in Iran from 1973 to 2012. Using vector autoregression (VAR)-based impulse response functions, we find a positive and statistically significant response of income inequality to oil rents booms within 4 years after the shock. The Autoregressive-Distributed Lag (ARDL) results show that a 10 percent increase in oil and gas rents per capita leads to 1.1 percent increase in income inequality in the long run. The results are robust after controlling for income-distribution channels in Iran. Our analysis can help policy makers to evaluate and accommodate the possible positive or negative effects of lifting sanctions on inequalities in Iran.
Subjects: 
oil rents
inequality
VAR
ARDL
sanctions
Iran
JEL: 
Q33
Q38
D63
Document Type: 
Working Paper

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