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Stata Technical Bulletin

31


h

: headcount ratio

apg

aggregate poverty gap

pgr

: poverty gap ratio

igr

income gap ratio

s

Sen index

w

Watts index

tak

: Takayama index

thon

Thon index

fgtl

FGT(0.5)

fgt2

FGT(1.5)

fgt3

FGT(2)

fgt4

FGT(2.5)

fgt5

FGT(3)

fgt6

FGT(3.5)

fgt7

FGT(4)

fgt8

FGT(4.5)

fgt9

FGT(5)

chul

CHU(0.1)

chu2

CHU(0.25)

chu3

CHU(0.5)

chu4

CHU(0.75)

chu5

CHU(0.9)

all

wrapper to select all the above indices at once.

Example

The use of poverty is extremely simple. Consider the dataset subcvse.dta provided with glcurve in Jenkins and Van
Kerm (1999). We have a (single adult equivalent) household income measure (eqinc) and a variable with the household size
(size). Applying poverty to eqinc (f)weighted by size with the all option returns the whole series of measures computed
over all observations and taking half the median of eqinc as the poverty line.

. poverty eqinc [fw=size] , all

Poverty measures of eqinc

Your selection is made of 200 observations.

The following poverty analysis has been using the 200 non-missing
observations for eqinc in your selection.

The poverty line is set at 134.5 units

(1/2 of median value)

Headcount ratio 7.

1.020

Aggregate poverty gap                233

8 units

(or equivalently

0.48 units per obs.)

Poverty gap ratio 7.

0.384

Income gap ratio 7.

34.721

Watts index

0.887

Index FGT(0.5) *100

0.862

Index FGT(1.5) *100

0.249

Index FGT(2.0) *100

0.188

Index FGT(2.5) *100

0.180

Index FGT(3.0) *100

0.124

Index FGT(3.5) *100

0.108

Index FGT(4.0) *100

0.090

Index FGT(4.6) *100

0.079

Index FGT(ε.O) *100

0.069

Clark et al. index (0.10) *100

0.828

Clark et al. index (0.28) *100

0.489

Clark et al. index (0.80) *100

0.434

Clark et al. index (0.78) *100

0.390

Clark et al. index (0.90) *100

0.368

Sen index *100

0.466

Thon index *100

0.706

Takayama index *100

0.383

Efveight= size]

If we are interested only in the headcount ratio, the poverty gap ratio and the Sen index and want to check the sensitivity
of the results against a different poverty line (e.g., two-third of the median), we can type

. poverty eqinc [fw=size] , h pgr s line(-2)

Poverty measures of eqinc

Your selection is made of 200 observations.

The following poverty analysis has been using the 200 non-missing
observations for eqinc in your selection.



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