A Separation: The Economics behind the Administrative Area Modifications in Iran

Einian, Majid (2019): A Separation: The Economics behind the Administrative Area Modifications in Iran.

Abstract

Once in a few years, we witness a new ostan (province) being born out of older ostans in Iran. The number of shahrestans has gone from 316 in 2003 to 429 in 2013. There seems to be an everlasting desire for lower levels of administrative areas to separate and form a new higher level area. Shahrestans want to become ostans, and bakhshs want to become shahrestans. This paper studies the economic effects of becoming a new ostan by looking at the consumption of households. Results show a significant positive effect on the growth of consumption in the separation year or the following year. Becoming the central Shahrestan of the new Ostan does not show positive effects on consumption growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Administrative Areas, Cohort Pseudo Panel, Household Consumption
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration ; Regional Labor Markets ; Population ; Neighborhood Characteristics

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