Modeling Rural Househols, Saving and Effects of Different Policies

Document Type : Research Paper

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Abstract

Savings in a society including rural communities could be a prelude to the formation of capital and promotion of economic development.  This paper aims to modeling the rural household savings and the effect of different policy scenarios on it. For this purpose, mathematical modeling approaches have been used. Needed data collected through interviews and filling up questionnaires from sample of 184 rain-fed wheat grower households in Razan County, in 92-1391 crop year. Results of the the study revealed that households with 5-7 members and more than 40 hectare of land had the highest level of savings , and households with more than 7 members and less than 5 hectares of land had the the lowest level of savings. Also findings of the study suggest that the implementation of a policy scenario based on a 50 percent increase in subsidy, and 20 percent increase in households, income would have the greatest impact on the situation of household savings. 

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