Exercise 2.2
Using the file AGGR-7, decompose total poverty in Cameroon according to the categories captured by GSIZE without using the SIZE variable and by using it. 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: POVERTY|FGT Index

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

RESULTS
 

FGT (Poverty Decomposition)

Session Date Thu Jul 08 12:30:08 EDT 2004
Execution Time 0.079 sec
FileName AGGR-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPCAP
Size variable Without size
Group variable GSIZE
Group Number 1-2-3-4-5
Option Normalised = NO
Parameter α= 0
Estimate 0,48938683
  (0,02143319)
Poverty Line 373,00000000
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,05817377
0,10608862
0,00617158
0,01261083
 
(0,03372933)
(0,01395041)
(0,00368044)
(0,00749532)

2

0,15094393
0,08682725
0,01310605
0,02678055
 
(0,05312024)
(0,01200508)
(0,00499765)
(0,01014876)

3

0,36667818
0,19798595
0,07259712
0,14834303
 
(0,04584846)
(0,01663695)
(0,01129293)
(0,02223620)

4

0,54986078
0,29238230
0,16076957
0,32851222
 
(0,03794980)
(0,01921358)
(0,01620962)
(0,02989274)

5

0,74749058
0,31671667
0,23674272
0,48375377
 
(0,03139741)
(0,02010935)
(0,01884735)
(0,03188765)

TOTAL

---
1.0
0,48938683
1.0
 
 
(0.00)
(0,02143319)
(0.00)

 

 

  • Size variable = SIZE.

RESULTS
 

FGT (Poverty Decomposition)

Session Date Thu Jul 08 12:33:14 EDT 2004
Execution Time 0.063 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
Option Normalised = NO
Parameter α= 0
Estimate 0,63233978
  (0,02297149)
Poverty Line 373,00000000
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,05817377
0,01717010
0,00099885
0,00157961
 
(0,03372933)
(0,00252972)
(0,00059953)
(0,00095109)

2

0,15094393
0,02810541
0,00424234
0,00670896
 
(0,05312024)
(0,00421574)
(0,00163728)
(0,00260610)

3

0,36805430
0,11267345
0,04146995
0,06558175
 
(0,04665033)
(0,01104514)
(0,00692030)
(0,01120705)

4

0,54575646
0,27868056
0,15209171
0,24052213
 
(0,03824773)
(0,02054873)
(0,01626881)
(0,02624767)

5

0,76954043
0,56337106
0,43353680
0,68560731
 
(0,03004824)
(0,02454234)
(0,02760308)
(0,02917871)

TOTAL

---
1.0
0,63233978
1.0
 
 
(0.00)
(0,02297149)
(0.00)