Reflecting the large initial distortions, trade, exchange rate, and energy reforms could generate large welfare gains for the Islamic Republic of Iran. If combined with direct income payments to all households (not just the poor), the poor would benefit enormously. The authors show that well...

Results from a two-step simulation that uses a computable general equilibrium model and detailed consumption and income household data suggests that trade liberalization benefits people in the poorest deciles more than those in the richer ones