Estimating the Welfare Costs of Reforming the Iraq Public Distribution System: A Mixed Demand Approach.

Through three decades of conflict, food rations delivered through the public distribution system (PDS) have remained the largest safety net among Iraq's population. Reforming the PDS continues to be politically challenging, notwithstanding the system's import dependence, economic distortions, and un...

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Publicado en:Journal of Development Studies Vol. 55; pp. 91 - 107
Autores principales: Krishnan, Nandini, Olivieri, Sergio, Ramadan, Racha
Formato: Artículo
Publicado: Taylor & Francis Ltd 2019Supplement
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: 2019Supplement
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      pub: Taylor & Francis Ltd
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        10.1080/00220388.2019.1687878
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        atl: Estimating the Welfare Costs of Reforming the Iraq Public Distribution System: A Mixed Demand Approach.
      aug:
        au:
          Krishnan, Nandini
          Olivieri, Sergio
          Ramadan, Racha
        affil:
          Poverty and Equity Global Practice, World Bank, Washington, DC, USA
          Faculty of Economics and Political Science, Economics Department, Cairo University, Cairo, Egypt
      su:
        Iraq
        Public welfare
        Cities & towns
        Households
        Cost estimates
        Base oils
      sug:
        subj:
          Public welfare
          Cities & towns
          Households
          Iraq
          Private Households
          Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs)
          Emergency and Other Relief Services
          Health and Welfare Funds
          Other Individual and Family Services
          Cost estimates
          Base oils
      ab: Through three decades of conflict, food rations delivered through the public distribution system (PDS) have remained the largest safety net among Iraq's population. Reforming the PDS continues to be politically challenging, notwithstanding the system's import dependence, economic distortions, and unsustainable fiscal burden. The oil price decline of mid-2014 and recent efforts to rebuild and recover have put PDS reform back on the agenda. The government needs to find an effective way to deliver broad benefits from a narrow economic base reliant on oil. The study described here adopts a mixed demand approach to analysing household consumption patterns for the purpose of assessing plausible reform scenarios and estimating the direction and scale of the associated welfare costs and transfers. It finds that household consumption of PDS items is relatively inelastic to changes in price, particularly among the poor. The results suggest that any one-shot reform will have sizeable adverse welfare impacts and will need to be preceded by a well-targeted compensation mechanism. To keep welfare constant, subsidy removal in urban areas, for example, would require the poorest and richest households to be compensated for, respectively, 74 per cent and nearly 40 per cent of their PDS expenditures.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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