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30


Stata Technical Bulletin


STB-48


The poverty measures estimated by poverty are computed as follows:

1 n / ~ ʌ. «

-ÏJ *<I<


Foster-Greer-Thorbecke class:

Headcount ratio:              0 = FGT(Q)

Poverty gap ratio:

pgr = FGT(1)

Income gap ratio:

Aggregate poverty gap:

aPg = Σ"=1 - yt) wi1i

Watts index:

1 n

watts = — V (ln(z) - ln(j∕i)) wiIi

IN δ
i=l

Clark-Hemming-Ulph class:

⅛∑(>-(?/)^

Thon index:

2       n

tll°n = z(ΛT+1)ΛT Σ (jv + 1 -     - ⅜) wΛ

Takayama index:

tak = 1 + ɪ - 2 ∑i=1 (jv + 1 ~   Wi 1Vi1i + zβ~Ii}'}

N _      ∑j^=ιNwi(yiIi + z(l - Ii')')      _

Sen index:

2 n

sen = z(5+1)AT Σ (5 + 1 - r⅛) (z - wi1i

In the Foster-Greer-Thorbecke class, along with FGT(Q) and FGT(I), poverty computes FGT(<a) with a =Q.5, 1.5,
2, 2.5, 3, 3.5, 4, 4.5, 5. In the Clark-Hemming-Ulph class, poverty computes GHU(∕3) with
β =Q.1, Q.25, Q.5, Q.75, Q.9.

Syntax

poverty varname Weeihht] [if exp] [in range] [, line(#) gen(,newvarname) select-options]
aweights and fweights are allowed.

Options

line(#) specifies the value of the poverty line. If # is set to —1, the poverty line is computed as half the median of varname.
If
# is set to —2, it is computed as two-thirds the median of varname. Default is —1.

newvaewvaename) creates the new variable newvarname and sets it to 1 for all observations identified as poor (i.e., observations
for which
varname is below the specified poverty line) and Q for observations identified as non-poor. neevarname is set to
missing for observations with missing
varname or not included by the if in statements.

select-options are options used to select the indices to be computed. It can be any of the following (multiple selections are
allowed, see examples below):



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