Estimating the conditional standard deviation of some living standard
  •  according to the level of the initial period

The following figure shows a scatter plot of the beninese household expenditures for 1996 and 1999.

To show the conditional standard deviation of these expenditures:

  1. Use DAD and launch the application Distribution => Conditional standard deviation.
  2. Select the appropriate vectors (X: Income in the initial period, Y: Income in the final period)
  3. Click on the button RANGE and choose the appropriate range (optional)
  4. Click on the button GRAPH



One can normalise this standard deviation by the expected level of Y (the expected total expenditures in the final period at a given level for the initial period). To do this, select the option "Normalised by the expected value of Y"

  •  according to the average income

Instead of initial income, one can use average income of the household across the two years.