Poverty Elasticity

[Z G Dapel]

Dear Poverty Analysts,
I'm needing a command that compute the rate of change in headcount to change in PCE.

Thanks

[Sergiy Radyakin]

ADePT, table 3.24.
See p199 here: http://siteresources.worldbank.org/I...0821384619.pdf
The software itself is here: http://www.worldbank.org/adept
Best, Sergiy Radyakin

[Z G Dapel]

Thanks Sergiy. I have used ADePT a couple of times but will wish to use Stata User-written command as its conventionally accepted for the analysis of household survey datasets. More over FGT results from ADePT are quite disimilar from Stata's.

[Sergiy Radyakin]

Thanks Sergiy. I have used ADePT a couple of times but will wish to use Stata User-written command as its conventionally accepted for the analysis of household survey datasets. More over FGT results from ADePT are quite disimilar from Stata's.

ADePT is designed for the analysis of household surveys data, so there is no incompatibility with that.
If you believe there is any problem with ADePT, you are welcomed to submit the bug-report. Otherwise I would be more concerned about the accuracy of the standalone Stata routine.

Best, Sergiy Radyakin

[Marko Ledic]

@Z G Dapel - You can use Van Kerm's user-written command -poverty- to calculate a headcount ratio (FGT(0)) in each state/year and then simply compute the difference.

Hope this helps.

Best regards, Marko

[Z G Dapel]

@ Marko, thanks for your contribution. Not really clear to me. Can you please elaborate?

[Z G Dapel]

@Sergiy. It seems there is no ADepT for Mac

[Marko Ledic]

A workout if the DASP package does not work for you would be to compute a FGT(0) for two years/states using -poverty- (Van Kerm's user written program) and then you can take the difference between these FGT(0)'s . Best, Marko

[Z G Dapel]

Thank you all. I revisited ADePT and it work perfectly

[Konrad Zdeb]

@Sergiy. It seems there is no ADepT for Mac

No, there isn't and there are no plans to develop it.

[Z G Dapel]

Thanks

[dilandilan]

i think this will be good to use ((ADePT, table 3.24))

[GabrielBonfiglio]

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[Stephen Jenkins]

There is no need to use special programs to derive estimates of the poverty rate (a.k.a. headcount ratio a.k.a. FGT(0) poverty measure). The rate is a simple proportion. Suppose you have an indicator (dummy, 0/1) variable summarising whether someone is poor or not. The proportion poor is the mean of this variable. Other 'FGT' poverty measures can also be calculated as means of a conveneniently calculated variable. For example, for FGT(1) , first create a variable equal to the normalized poverty gap (i.e. poverty line minus income, all divided by poverty line) multiplied by the poverty status indicator variable. Then take the mean of that. To get standard errors (assuming that the poverty line is given and doesn't have to be estimated from the data), simply use the svy: prefix command after having appropriately svyset your data. For illustrations, see Estimation and interpretation of measures of inequality, poverty, and social welfare using Stata. Presentation at North American Stata Users' Group Meetings 2006, Boston MA. http://econpapers.repec.org/paper/bocasug06/16.htm.
There are of course also specialist programs for computing poverty measures, but they typically don't provide SEs (without further work, e.g. via bootstrapping). On SSC is poverty and povdeco. (DASP by Duclos and Araar is a specialist suite of Stata programs available from http://dasp.ecn.ulaval.ca/, and requires registration. The World Bank's ADepT has been mentioned above.)

[Zuhumnan Dapel]

Dear Prof Jenkins,
First of all thank you for your post. Given datasets for Period 1 and Period 2 of household surveys, negative (positive) growth in income between the periods is expected to lead rise (fall) in poverty rate and also a change inequality (if we not not assumed this to be constant). The change in inequality (or shift in the lorenz curve) will in turn affects the poverty rate. Based on Ravallion and Datt (1992), this is the decomposition of poverty changes into growth and redistribution components. How can one measure the elasticities of poverty response to the shift in inequality and growth. My question does not seem to be answered by efgtgr as this command is meant to deal with static estimate, not between two periods but one.?

Thank you very much,
Dapel