This paper contains the main results concerning the
evaluation of the consumption distribution of Iran in terms of
levels, shape, inequality and social welfare for the years 1989
The results show that the shape of consumption distribution in Iran is showed to the right and there is a large gap between the average level of consumption in rural and urban areas. Inequality in Iran is relatively high and there were no significant changes in inequality in the whole country during the Islamic Republic’s first five-year plan (1989-1994). This estimates for the whole country masks a decrease in quality of urban area and an increase in rural areas.