Exercise 6.1

With AGGR-7, decompose poverty across SEX. Then check the calculations of the absolute and relative decompositions provided by DAD by separately calculating the poverty indices for each group in SEX. Reconstruct manually the decomposition to verify that DAD gives the correct decomposition results.

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 Thu Jul 08 12:52:49 EDT 2004
Execution Time 0.016 sec
FileName AGGR-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPCAP
Size variable SIZE
Group variable SEXE
Group Number 1-2-3
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

0,64996016
0,88770700
0,57697415
0,91244322
 
(0,02470129)
(0,01217621)
(0,02446533)
(0,01557062)

2

0,49000558
0,11162376
0,05469626
0,08649822
 
(0,05447216)
(0,01215296)
(0,00972312)
(0,01552519)

3

1,00000000
0,00066927
0,00066927
0,00105841
 
(0,00000006)
(0,00067008)
(0,00067008)
(0,00106069)

TOTAL

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