The Effect of Targeted Subsidies on the Demand Patern of Wood and its Products in Khorramabad City

Document Type : Research Paper

Authors

1 M.Sc. student of Forestry, Faculty of agriculture and natural resources, Lorestan university, Lorestan, Iran

2 Assistant Prof., Forest economics, Department of forestry, Faculty of agriculture and natural resources, Lorestan university, Lorestan, Iran

3 Ph.D. student, Economics, Faculty of management and economics, Tarbiat Modarres university, Tehran, Iran

Abstract

this study seeks to examine the effect of targeted subsidies on the demand for raw and semi-processed wood (wood Russian, MDF Melamine, MDF Higlass, Chipboard, Litron and Door Cover) in khorramabad City during the period of 2009-2016. The data of the present study was compiled seasonally from spring 2009 to winter of 2016 by documentary and from the 7th wholesale sales offices of this city and analyzed usingthe almost ideal demand system (AIDS). The results showed that the purposefulness of subsidies had a structural failure due to the demand pattern of wood and wood products. In other words, the demand pattern of people before and after the targeting of subsidies is different, which means that the reaction of the applicants of each product to their prices, the price of other products and changes in income before and after the purpose of subsidies has changed.

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References

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Iranian Journal of Wood and Paper Industries
Volume 9, Issue 4
March 2019
Pages 525-535

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