Exercise 8.46
Per FCFA of growth in overall per capita EXPEQ, which of growth in FDEQ or in NFDEQ leads to greater poverty reduction? Graph this for a range of poverty lines and for all poverty indices of the second-order (a=1, or s=2).

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|INCOME COMPONENT PROPORTIONAL GROWTH

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

RESULTS
 

Income-Component Proportional Growth (Poverty)

Session Date Thu Sep 02 11:31:49 EDT 2004
Execution Time 0.329 sec
FileName ESPMEN.daf
OBS 2000
Weight variable SIZE
Group variable No Selection
Group Number 1
Total Income EXPEQ
Income Component FDEQ
Option Change per $ of component
Parameter Poverty line=60000
Estimate -0.88568588

Income-Component Proportional Growth (Poverty)

Session Date Thu Sep 02 11:32:46 EDT 2004
Execution Time 0.047 sec
FileName ESPMEN.daf
OBS 2000
Weight variable SIZE
Group variable No Selection
Group Number 1
Total Income EXPEQ
Income Component NFDEQ
Option Change per $ of component
Parameter Poverty line=60000
Estimate -0.65964637