The effect of drug price liberalization on income distribution; A mathematical approach

Document Type : Research Paper


Department of Economics, Faculty of Law and Economics, KhomeiniShahr Branch, Islamic Azad University, KhomeiniShahr, Isfahan, Iran


Improving income distribution is considered as one of the components of economic development in the Iranian economy, especially in the years after the Islamic Revolution. Due to the dependence of the government budget on oil revenues (40%) and the high share of subsidies in the annual budget (10%) of the Iranian economy, fluctuations in the global oil market, sanctions imposed in this area and the subsequent uncertainty in the realization of Oil revenues can affect government budgets and revenue distribution. In this study, in order to study the effect of drug price liberalization on inequality and income distribution using the Gini coefficient index, the integrated data model in the period 2010: 1 to 2019: 4 has been used. The results show that drug price liberalization has a negative and significant effect on the level of income distribution in the short run.


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Volume 14, Issue 2
February 2023
Pages 75-85
  • Receive Date: 01 February 2022
  • Revise Date: 29 April 2022
  • Accept Date: 01 May 2022