Skip to content

Lecture Series on 08.12.2022, 18:00h to 20:00h in Marburg

Lecture from Prof. Dr. Mohammad Reza Farzanegan (Philipps-Universität Marburg)


The lecture examines the impact of oil revenues on the size and income of the middle class in Iran. Following Kharas (2017), an absolute measure is used to define the middle class as those earning between $11 and $110 per day (2011 PPP). The study uses annual time series data for the period 1965-2017 and a vector autoregressive (VAR) model along with impulse response and variance decomposition analyses. The results show that the response of the middle class to positive oil income shocks in Iran is positive and significant. It is also shown that the channels of international non-oil trade, services sector, and macroeconomic development are important in understanding the relationship between oil income and the middle class in Iran. These results are robust to other channels related to oil income and the middle class, as well as alternative definitions of middle-class income based on relative measures from the Iranian Household Income and Expenditure Surveys.

Short Biography

Prof. Dr. Mohammad Reza Farzanegan is a Professor of Middle East Economics at the Center for Near and Middle East Studies (CNMS) and the Department of Economics at the  Philipps University of Marburg. His research focuses on the political economy of natural resources, empirical development economics, the economics of sanctions, and empirical institutional economics.

For more information, please visit:


Lecture Video