Study the Impacts of Targeted Subsidies plan On the Consumption Patterns of Rural Families in Central Districts of Birjand Township

Abstract

Iran's rural economy has confronted with various challenges since the last two decades, which one of its consequences is the difference between the expenditureas and the income of the households .In this situation, applying targeted subsidies creates changes in house hold's income and expenditures. So, it seems critical to analyze the targeted subsides' effects in order to prevent negative consequences and to increase the positive ones. This study is practical regarding the objective poin of view and its method is descriptive – analytical. The required data were gathered by field and library studies. The present study, in order to evaluate the effects of targeted subsides on the expenditures of rural households, by using multi variable regression, , means comparison test and system dynamic has measured the variables or patterns of families' consumption in the villages of central part of Birjand city. The statistical society of this study is the families resident in 145 villages at central part of Birjand city. Study variables includ ing the cost of food, health, entertainment, education, cost of production, housing and transportationcost. The results show that by considering the inflation rate and average of expenses' raise, food expense's share in low and high income groups has decreaed. on the another side, production expense has increased for all three groups, especially for low income ones. Transport expense and production expense are 64% and 54%, respectively. It is highly recommended that targeted subsidie's applying method should be changed to alleviate production expense and manage consumption pattern.

Keywords

• targeted subsidies
• system dynamics
• birjand's central district