The effect of Covid 19 on the level of welfare of households in Yazd and Kerman provinces An estimate of the parasite welfare index

Undoubtedly, consumption is an important factor in the economy and household welfare, and increasing household consumption items will lead to an increase in total consumption and household welfare. According to the parasite approach, rich households have a lower share of food costs than poor households. Since the corona pandemic seems to affect the behavior of households and the household spending pattern of these two provinces during the studies of Rahimi and Molana (2015, 2014) between urban and rural households is close to each other, this article It has tried to show that this corona has reduced the level of welfare of the families of these two provinces.

For this purpose, household income data of the Statistics Center of Iran for the years 1399-1397 have been used. The results of the research show that the parasite law is true for the families of these two provinces and the conditions of 1399, which was affected by the corona, have reduced the welfare of the families of these two provinces.

In this article, we try to study the law of parasites in Yazd and Kerman provinces, which according to Rahimi (2013) and Rahimi and Rumi (2014-2015) studies, their spending pattern is similar between urban and rural households and shows that Household welfare has declined in these two provinces. One of the important reasons for this decrease is the proximity of the urban household model of the two provinces to rural households. Rahimi et al. (1397, 1398) clearly showed that the level of welfare of Iranian households is very fragile. To prevent this damage, it is recommended that men, like the international system, use personal and household insurance products. Of course, Rahimi (2016 and 1400) and Rahimi et al. (2015) have discussed this product in detail.

As the results show, in Corona (1399) the independent variable for households in Yazd province decreased and therefore the share of food costs of households in this province increased, which according to the parasite approach to household welfare in this province has decreased compared to 1398 and 1397. In other words, the level of welfare of households in Yazd province has decreased during the estimated years, but in the year of Corona, this decrease has slowed down.

In Kerman province, the welfare of households has increased from 1397 to 1398, but for 1399 (the year of Corona) their welfare has decreased.

In this article, household income and expenditure data, the summary file of the Statistics Center of Iran, have been used. Due to the high volume of household data, the variables have been specified with code. To analyze the variables, the data needs to be processed. For data processing, questionnaire forms and the structure of the Statistics Center of Iran have been used. The total data processed for this article for Yazd and Kerman provinces are 3768 and 3451 urban and rural households during the period 1397-1397, respectively.

The model used in this article is taken from the articles of Dayton, Rumi and Rahimi (2015), which is the same as Equation (2).

In this equation, the model of general parasite welfare index is written, where W is the share of household food expenditure in total household expenditure and E is the share of total household expenditure. Of course, Dayton (1982, 1997, 1987, 2007, 2010, 2015), Lewbel (2008), Rahimi and Rumi (2014, 2015) have also made estimates with demographic variables to estimate the general pattern of the parasite, which is of great importance at the level of They are the welfare of families.

To show the changes in the parasite welfare index while estimating the model for the years 1397, 1398 (before the corona) and 1399 years of the corona, an estimate of pooled data has been performed to compare the coefficients. The Consumer Price Index (CPI) variable has also been added to avoid the inflationary effects of estimating the aggregated data model.

In the consumer theory literature, Engel curves describe how household expenditure on goods and services relates to household income. This approach, then popularized by and Price Hotker (1952), is known as Ernst Engel, a German statistician who first systematically studied and published this relationship in 1857. Since then, Engel's approach has become an important part of empirical demand analysis and has been used in many areas of economics, including structural change analysis, growth theory, international trade studies, and inflation measurement. He called his achievement "the law." He discovered that a poor household has a share of the budget allocated to larger nutrition (Engel, 1857, pp. 28-29). Hotker (1987) argues that Engel's achievement is one of the most proven empirical theories known in economics.