Payame Noor University Economic Growth and Development Research 2228-5954 8 31 2018 06 22 Measuring the Consumption Smoothing of Iranian Households’ Consumption Food Against the Temporary and Permanent Income Shocks Measuring the Consumption Smoothing of Iranian Households’ Consumption Food Against the Temporary and Permanent Income Shocks 93 106 4343 FA Mohammad Mowlaei Ph.D. Student of Economics, Bu-Ali Sina University, Hamedan, Iran Oday Ali Ph.D. Student of Economics, Bu-Ali Sina University, Hamedan, Iran Journal Article 2017 05 02 Household consumption expenditures one of the main economic variables that reflect the households’ welfare level as well as stimulate aggregate demand and purpose of all production in the economy. Therefore, measuring the income shocks transmission to household consumption is critical for evaluation the ability of consumption smoothing with income shocks or economic stability and hence, for designing stabilization, income-maintenance and optimal social policies in the aim to increasing purchasing power, preserving and promoting the welfare of households. According to the terms of stagflation in Iran economy over the past few years, this paper computes the degree of transmission of temporary and permanent income shocks to using the panel data on the income, meal consumption expenditures and other household characteristics (Age, gender, education, working status and marital status) gathered by Iranian urban and rural households’ expenditures and Income Surveys (HEIS) over the period 1388-1393. The results show that there is nearly complete insurance against temporary and permanent income during the period of study. Household consumption expenditures one of the main economic variables that reflect the households’ welfare level as well as stimulate aggregate demand and purpose of all production in the economy. Therefore, measuring the income shocks transmission to household consumption is critical for evaluation the ability of consumption smoothing with income shocks or economic stability and hence, for designing stabilization, income-maintenance and optimal social policies in the aim to increasing purchasing power, preserving and promoting the welfare of households. According to the terms of stagflation in Iran economy over the past few years, this paper computes the degree of transmission of temporary and permanent income shocks to using the panel data on the income, meal consumption expenditures and other household characteristics (Age, gender, education, working status and marital status) gathered by Iranian urban and rural households’ expenditures and Income Surveys (HEIS) over the period 1388-1393. The results show that there is nearly complete insurance against temporary and permanent income during the period of study. https://egdr.journals.pnu.ac.ir/article_4343_d91eda68027f877560f5d03fc1b312bc.pdf