Estimating the Minimum Living with Linear Expenditure System in Iran and Determination of the Ratio of Households in Poverty

Several definitions of poverty have been presented with different natures in respect to methodology. Moreover، various methods of measuring the minimum livelihood have done. One of the specific definitions among them is the relative poverty line which refers to disability of households to provide a specific level of life standards، seems necessary and favorable. In this research linear expenditure system for evaluating minimum livelihood was used and the portion of Iranian indigent families examined. Resulted coefficients of marginal tendency towards expenditure for commodity groups indicate that this coefficient for commodity groups of Houses and Foods is greater than other commodity groups. It means existing poverty in the society، therefore calculated poverty line for 2010 is equal to 3506960. 3 Rails. The results show that the commodity group of recreation belongs to normal and luxury goods while the other belongs to normal and necessary goods. The results were concluded from the calculation of poverty line which indicates an increase in annual minimum livelihood of families. To be mentioned the estimated numbers based on this method can be greater with respect to a two- digit inflation rate for the economy of Iran and surprising policies of Central Bank and government. Accordingly، we suggest adopting vulnerable household''s protection policies and distributive aims in order to decrease the poverty line and to improve the household’s welfare.