The Targeted Subsidies Act Implementation and the Combination of Agricultural Goods in Iranian Households’ Basket.

One of the main objectives of subsidy reform, was increase welfare and reduce inequality in society. this study by utilizing the data of micro-level Households’ Income and expenditure survey over 2008-2014, investigate the effect of subsidy reform on combination of agricultural goods in households’ basket as a qualitative scale to measure the welfare and livelihood of households using seemingly unrelated regression technique throught FGLS. The result of study show that after subsidy reform the share of Grain of total available agricultural goods in households’ basket increased more than other items and share of dairy had the lowest increase. The results of estimation show that increasing in real household incomes and employment status of head of household greatest effect in increasing the proportion of meat of agricultural goods from households’ basket, According Engel theory can be said, contrary to the purpose of targeting subsidies policy, is not conducive to improving living conditions for households.