The Impact of Iran’s Subsidies on Households

This project aims to study the impact of the targeted subsidy reform program launched in Iran in December 2010. Iran’s program is noteworthy for its innovative cash transfer program as well as the large size of price adjustments. Since its inception, the impact of the program has come into question. It was not clear how the cash transfer would reach the poor who had no bank accounts and those in remote rural areas where there are no banks in the first place. There was also skepticism about the impact of the transfers on the poor, how many it would lift out of poverty and whether it might cause loss of incentives for work.