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32


Stata Technical Bulletin


STB-48


The poverty line is set at 179.3333333333334 units
(2/3 of median value)

Headcount ratio %                          5.102

Poverty gap ratio %                        0.887

Sen index *100                              1.326

Efweight= size]

In order to study poverty incidence in a particular sub-population, we can save the value of the poverty line computed over
the whole population (see Saved Results below) and re-do the analysis by specifying the saved poverty line and selecting the
appropriate observations:

. Ioc line2 = $S_4

. poverty eqinc if size<5 [fw=size] , h pgr s line('line2z)

Poverty measures of eqinc

Your selection is made of 180 observations.

The following poverty analysis has been using the 180 non-missing
observations for eqinc in your selection.

The poverty line is set at 179.3333 units

Headcount ratio %                          6.812

Poverty gap ratio %                         1.184

Sen index *100                              1.771

Efweight= size]

Saved Results

poverty saves a number of results:

S_1 total number of observations in the data

S_2 number of observations used to compute the indices

S-3 weighted number of observations

S_4 value of the poverty line

S_5 weighted number of observations identified as poor

(the following results are only available if the measure has been requested)

S_6

headcount ratio [FGT(0)]

S-17

FGT(4)

S.7

aggregate poverty gap

S-18

FGT(4.5)

S-8

poverty gap ratio [FGT(1)]

S-19

FGT(5)

S-9

income gap ratio

S-20

CHU(0.10)

S-IO

Watts index

S-21

CHU(0.25)

S-Il

FGT(0.5)

S-22

CHU(0.50)

S-12

FGT(1.5)

S-23

CHU(0.75)

S.13

FGT(2)

S _24

CHU(0.90)

S-14

FGT(2.5)

S-25

Sen index

s.ιε

FGT(3)

S _26

Thon index

S-16

FGT(3.5)

S-27

Takayama index

References

Atkinson, A. B. 1987. On the measurement of poverty. Econometrica 55(4): 749-764.

Clark, S., R. Hemming, and D. Ulph. 1981. On indices for the measurement of poverty. The Economic Journal 91: 515-526.

Foster, J., J. Greer, and E. Thorbecke. 1984. A class of decomposable poverty measures. Econometrica 52: 761-765.

Hagenaars, A. 1986. The Perception of Poverty, Contributions to Economic Analysis series vol. 156. North-Holland.

Jenkins, S. P. and P. Van Kerm. 1999. sg107: Generalized Lorenz curves and related graphs. Stata Technical Bulletin 48: 25-29.

Ravallion, M. 1994. Poverty Comparisons, Fundamentals in Pure and Applied Economics series vol. 56. Harwood Academic Publishing.

Sen, A. 1976. Poverty: an ordinal approach to measurement. Econometrica 44: 219-231.



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