Exercise 8.44
Find the impact on national poverty of a predicted increase of 3% in everyone's expenditures FDEQ. Compare your results to those for a 3% increase in everyone's NFDEQ. Do this for the FGT indices with a=0, 1 and 2...

Answer
STEP 1: Initialising  the sampling weight: EDIT|Set Sample Design

 

  • After choosing the appropriate variable(s), click on  the button OK.

 

RECALL

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 Wed Aug 25 11:24:00 EDT 2004
Execution Time 0.0 sec
FileName ESPMEN.daf
OBS 2000
Weight variable SIZE
Group variable ZONE
Group Number 1
Total Income EXPEQ
Income Component EXPEQ
Option Change per 100% of component
Parameter Poverty line=60000.0
Estimate -4754.49973015

 

  • Hence the total impact on poverty is -4754.499*3/100=-142.634

 

Parameter

 FOOD NON FOOD
a=0 -0.000376568 -0.000807153
a=1 -142.6349919 -131.8048609
a=2 -12160740.26 -9645026.479