The welfare effects of returning foreign migrants on Iran cheap food policy

Document Type : Research Paper

Authors

Abstract

This study investigates welfare effects of out going migrants on consumers, producers, taxpayer's surpluses and government expenditures in wheat market (bread). Mathematical and graphical models in a comparative static framework were applied to evaluate surplus effects of guaranteed price and subsidized bread policy. Comparing those effects before and after leaving migrants show that consumer welfare and dead weight loss (DWL) could decline by 213.6, 573.3 and 474.4 billion Rials respectively, while taxpayers welfare would increase by 688.0 billion Rials and producers' welfare remains constant.

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