Consumption, Deciles and an Economic Experience in Iran and India

Understanding the changes in Well-being, Consumption, Income, Saving and Socio-Economic Indicators of Iranian people, who have experienced Several Five Year Plan is an important issue. At the end of each plan, it was expected that the wellbeing and other facilities in rural and urban areas would improve remarkably. The level of income and level of consumption was also expected to change. This research has dealt with effects of Five Year Development Plans on the Consumption, Marginal Propensity to Consume and Income Elasticity of Consumption in deciles of Income during the last two decades.It has also tried to evaluate the situation of consumption and its trend according to Five Year Plans. For this purpose the Households Income and Expenditure Survey are employed. The Annual Average Consumption Expenditure by resident household has been published by Statistical Center of Iran,which is the main source for such a this research. This project has also provided a comparative study on Consumption and GDP for Iran and India and then it has brought the estimation of consumption function in both countries. In addition it has compared both countries based on some socioeconomic indicators.