Exercise

Decomposing the poverty variation into growth and distribution Components (Datt & Ravallion   1992)

1. Load the BKF94.daf file and initialise its sampling design in sheet file1. Similarly, load the file BKF98.daf in the sheet file2 and initialise its sampling design. Consider that the two distribution are independent.

2. Decompose the variation in the incidence and depth  of poverty when:

• NVIE is the variable of interest for distribution 1 and NVIEI for distribution 2

• Use the Datt Ravallion approach

• t1 is the period of reference.

• The poverty line is 41099 F CFA

3. What can we say about the importance of the three components: growth, distribution and residue?

4. Now, use t2 as the reference period and perform the same decomposition. Do the results change ? if so, explain why.

5. Use the Shapley approach to  perform the decomposition  again. What do you find?.

Required DATA

#	Data	Description
01	BKF94
02	BKF98

REMARK: To download any of these daf files:

• point with your mouse on the desired file
• click on the left button of the mouse
• select the item Save target as
• indicate  the desired folder to save the file.

Answers