The Effect of Supportive Policies on the Products of Iran Agricultural Sector (Applying a Computable General Equilibrium Model)

The present study aims to examine the effects of economic adjustment policies in the agricultural sector. In this regard, to achieve the goals of this study computable general equilibrium models and accounting matrix 2016 were used. The results obtained from this research indicated decrease in the prices and a increase in the production in the agricultural sector to which economic adjustment is related on the other hand increase in the prices and a decrease in the production on other sectors were observed. The overall results of the study show a decrease in prices and an increase in production in the agricultural sector, which has been subject to economic adjustment; in contrast, other sectors are witnessing an increase in prices and a decrease in production. Given that the welfare of the producer is directly dependent on the price and quantity of production, and in the agricultural sector, despite the decrease in prices, the welfare of the producer has increased, the reason for this can be considered to be the greater increase in production than the decrease in prices, which, as a result, has led to an increase in the welfare of the producer in the basic state.