Exercise 10.4

Compute the Gini and Atkinson (with e = 0.5) indices of inequality for:

  1. Total expenditure when the size variable equals 1 for all households.

  2. Expenditure per capita when the size variable equals SIZE

  3. Expenditure per equivalent adult when the size variable equals SIZE.

  4. Expenditure per equivalent adult when the size variable equals 1.

Comment on the differences between these 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: INEQUALITY|GINI INDEX

 

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

 

RESULTS

 

Gini / S-Gini (Inequality)

Session Date Tue Sep 14 13:54:36 EDT 2004
Execution Time 0.25 sec
FileName SENEGAL_95.daf
OBS 2447
Sampling Weight WEIGHT
Variable of interest EXP
Size variable Without size
Group variable No Selection
Group Number 1
Parameter ρ=2.0

Estimated value

Standard deviation

Lower bound

Upper bound

Confidence Level in (%)

0.41874137

0.01083185

0.39751134

0.43997141

95.00000000

 
  Gini Atkinson
a- EXP 0.4187 0.1424
b- EXPCAP//SIZE 0.3899 0.1277
c- EXPEQ  // SIZE 0.3840 0.1236
d- EXPEQ // Without size 0.4135 0.1480