Exercise 1.3
Using for the variable EXPCAP the poverty line used in question ex-1.1, and for the variable TTEXP the poverty line found in question ex-1.2, decompose poverty across household size GSIZE using EXPCAP and TTEXP. Discuss..

Answer
STEP 1: Initialising  the sampling weight: EDIT|Set Sample Design

 

  • After choosing the appropriate variable(s), click on  the button OK.

STEP 2: Use the DAD Application: DECOMPOSITION|FGT : Decomposition by groups

  • After choosing the appropriate variable(s) and parameters, click on the  Compute button.

RESULTS

 

FGT (Poverty Decomposition)

Session Date Tue Jul 06 09:10:44 EDT 2004
Execution Time 0.125 sec
FileName AGGR-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPCAP
Size variable SIZE
Group variable GSIZE
Group Number 1-2-3-4-5
alpha 0
Estimate 0.63233978
  (0.02297149)
Poverty Line 373.00000000
  (0.00000000)

Group #

Estimate

Proportion

Relative Contribution

Absolute Contribution

1

0.05817377
0.01717010
0.00157961
0.00099885
 
(0.03372933)
(0.00252972)
(0.00095109)
(0.00059953)

2

0.15094393
0.02810541
0.00670896
0.00424234
 
(0.05312024)
(0.00421574)
(0.00260610)
(0.00163728)

3

0.36805430
0.11267345
0.06558175
0.04146995
 
(0.04665033)
(0.01104514)
(0.01120705)
(0.00692030)

4

0.54575646
0.27868056
0.24052213
0.15209171
 
(0.03824773)
(0.02054873)
(0.02624767)
(0.01626881)

5

0.76954043
0.56337106
0.68560731
0.43353680
 
(0.03004824)
(0.02454234)
(0.02917871)
(0.02760308)

TOTAL

---
1.0
1.0
0.63233978
 
 
(0.00)
(0.00)
(0.02297149)

 
STEP 3: Select again the appropriate variables and parameter values.
After choosing the appropriate variable(s) and parameters, click on the  Compute button.

RESULTS
 

FGT (Poverty Decomposition)

Session Date Thu Jul 08 12:12:27 EDT 2004
Execution Time 0.109 sec
FileName AGGR-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest TTEXP
Size variable Without size
Group variable GSIZE
Group Number 1-2-3-4-5
Option Normalised = NO
Parameter α= 0
Estimate 0,63276297
  (0,02003080)
Poverty Line 2515,29003906
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,90451819
0,10608862
0,09595908
0,15165092
 
(0,03610573)
(0,01395041)
(0,01351650)
(0,02071086)

2

0,77280217
0,08682725
0,06710028
0,10604332
 
(0,05609477)
(0,01200508)
(0,01095695)
(0,01700773)

3

0,75830686
0,19798595
0,15013410
0,23726752
 
(0,03539877)
(0,01663695)
(0,01546205)
(0,02338504)

4

0,63456827
0,29238230
0,18553653
0,29321650
 
(0,03514845)
(0,01921358)
(0,01726189)
(0,02558225)

5

0,42319435
0,31671667
0,13403270
0,21182133
 
(0,03838765)
(0,02010935)
(0,01495279)
(0,02269805)

TOTAL

---
1.0
0,63276297
1.0
 
 
(0.00)
(0,02003080)
(0.00)