CoPS/IMPACT Working Paper Number G-255

Title: A Computable General Equilibrium Model of International Sanctions

Authors: M. Reza Gharibnavaz and Robert Waschik


We detail recent international sanctions against the Iranian economy and its government. The effects of these sanctions on the Iranian economy, the Iranian government and rural and urban Iranian households disaggregated by income decile are modelled using a Computable General Equilibrium (CGE) model which uses endogenous taxes to simulate the effects of sanctions. Results suggest that sanctions on Iranian oil exports had a serious negative effect on the Iranian economy, with very strong negative changes on real revenue earned by the Iranian government, but much more limited effects on the well-being of Iranian rural and urban households.

JEL classification: F51, Q34, C68

Please cite the later published version in:
Gharibnavaz, M.R. and R. Waschik (2017), "A Computable General Equilibrium Model of International Sanctions in Iran", World Economy xx, pp.xx-xx,

Keywords: sanctions, oil, Iran, CGE model.

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