Small area estimation techniques are frequently used in poverty mapping.
For this paper, an econometric approach to small area estimation, known
as the ELL method, was applied to estimate poverty and inequality
indicators in small areas1 of the Islamic Republic of Iran. This study aims
to determine patterns of poverty and inequality in small areas and
household characteristics related to them in order to provide practical
tools for a geographically targeted pro-poor policy. Drawbacks in the
current Government welfare policy (uniform cash distribution) along with
the diversity among provinces and small areas regarding scale of poverty
and inequality and their correlates, as well as the level of living standards,
underlines the need to utilize small area estimations as a tool for
evidence-based policymaking