Study of household poverty and the effect of expenditures of commodity groups on poverty in Iran: Pseudo-panel data method

The aim of this study was to analyze the effect of commodity group expenditures on the probability of urban and rural household poverty in Iran. First, using household expenditure-income data in 1399, the poverty line was calculated based on the method of 66% of the average per capita expenditure, which is higher than urban households than rural households. In the following, the research model is limited by a dependent variable and is estimated based on pseudo-panel data in logistic regression by random effects method. The results showed that the expenditures of the communication group have the greatest impact on the probability of household poverty in urban and rural areas and the impact of this group of goods in urban areas is greater than rural areas. In contrast, hotel and restaurant costs in urban areas have a greater positive effect on reducing the likelihood of household poverty than in rural areas. But the cost of durable goods in urban areas, transportation in rural areas, and the cost of recreation and cultural affairs do not have a significant effect on the likelihood of household poverty. There is also no significant difference between the impact of furniture and household appliances, clothing and footwear and health care in urban and rural areas. Between social characteristics of the household, variables of gender and education have a negative effect on the probability of poverty and variables of household dimension and marital status have a direct effect on the probability of poverty of urban households, but these variables have no significant effect on the probability of poverty of rural households.