Exercise 8.49
Say that food prices are about to increase by about 10%, due to the removal of food subsidies. What is the predicted impact on the Gini index and on L(p=0.5)?
Answer

RECALL

 
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: CURVES|CONCENTRATION CURVES

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

RESULTS
 
  • Estimated : Cfood(p=0.5)-  L(p=0.5)=0.08251004
  • mfood/m = 0.34570105 : you can compute this ratio by the application : DITRIBUTION|STATISTICS
  • Total impact on L(p=0.5)= 10% * 0.34570105 *   0.08251004 =   0.002852380746354
  • Total impact on Gini          = 10% * 0.34570105 * -0.20100480 = -0.006948757041504