where expr_max = maximum monthly household expenditure in country X at year t. Assuming poverty line does not change, calculate Po (head count poverty index),
where expr_max = maximum monthly household expenditure in country X at year t. Assuming poverty line does not change, calculate Po (head count poverty index), P1 [poverty gap index] and P2 [poverty severity index) as well as Ru [relative poverty] at national levels in this country X at time t+ 1. f. Please compare P0, P1, P2, R0 at national levels at time t and compare P0, P1, P2, and R0 at national levels at time t+ 1. Please give some discussion on this comparison, in particular, what economic growth means P0, P1, P2, and R0. Note: Attached your do-file as well in your answer sheet that you submit. The file hslrt.dta contains information on a sample of household in country X at year t, where: provid = provincial ID distid = district ID hhid = household ID nrt = size of household (# of person] expr = total household monthly expenditure wert = household weight Also note that file povlpr01.dta contains information of poverty line for each province in country X at year t, where: povl = provincial poverty line [i.e. people with monthly expenditure per capita below this line is considered poor) a. Calculate monthly expenditure per capita in each province. b. Calculate Po [head count poverty ratio/index), P1 (poverty gap index] and P2 [poverty severity index] at provincial level in this country X at time t as well as the national level indexes. c. Please calculate the monthly expenditure per capita of the poorest one- fifth of the population in each province and define a relatively poor person as those with a monthly expenditure below this expenditure. Calculate the proportion of the population at provincial level that is considered relatively poor (Re) as well as the proportion provincial level and at the national level. C]. At the national level, compare Po and Re. Which one is large and why it is so? e. Suppose by year t+1 the country's economy grows [=egr) by 7% in such the impact of each household follows the following formula: i expr) )12 expr_max (t) expr(t + 1) = expr(t) {1 + egr.( }; i.e. the growth ofthe economy benefits the rich more than the poor. 10:27 .. . . A Assignment 1_2022.pdf . . . Assignment 1 IDEC 8022 Economic Development Submit your answer by 25 Aug 2022 The file hs1rt.dta contains information on a sample of household in country X at year t, where: provid = provincial ID distid = district ID hhid = household ID nrt = size of household (# of person) expr = total household monthly expenditure wert = household weight Also note that file povipro 1.dta contains information of poverty line for each province in country X at year t, where: povl = provincial poverty line (i.e. people with monthly expenditure per capita below this line is considered poor) (Do not use Stata command related to poverty. Use information on household weight in working on the following exercises.) a. Calculate monthly expenditure per capita in each province. b. Calculate Po (head count poverty ratio/index), P1 (poverty gap index) and P2 (poverty severity index) at provincial level in this country X at time t as well as the national level indexes. c. Please calculate the monthly expenditure per capita of the poorest one- fifth of the population in each province and define a relatively poor person as those with a monthly expenditure below this expenditure. Calculate the proportion of the population at provincial level that is considered relatively poor (Ro) as well as the proportion provincial level and at the national level. d. At the national level, compare Po and Ro. Which one is large and why it is so? e. Suppose by year t+1 the country's economy grows (=egr) by 7% in such the impact of each household follows the following formula: expr t + 1) = expr t) ) 1 + egr. ( expr() 12 ; i.e. the growth of the economy benefits the rich more than the poor
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