Estimation of FGT poverty indices

How poor was Burkina Faso in 1994?

1. Open the bkf94.dta file and label variables and values using the do file lab_bkf94.do.  Type the describe command and then label list to list labels.

2. Set the sampling design and then save the file (use variables strata, psu, and weight)

3. Estimate the headcount index using variables of interest expcc and expeq.

   1. You should set Size to household size in order to estimate poverty over the population of individuals.

   2. Use the so-called 1994 official poverty line of 41099 Francs CFA per year.

4. Estimate the headcount index using the same procedure as above except that the poverty line is now set to 60% of the median.

5. Using the official poverty line, how does the headcount index for male- and female-headed households compare?

6. Can you draw a 99% confidence interval around the previous comparison? Also, set the number of decimals to 4.

Answer

Q.1

If bkf94.dta is saved in the directory c:/data, type the following command to open it:

use "C:\data\bkf94.dta", clear

If lab_bkf94.do is saved in the directory c:/do_files, type the following command to label variables and labels:

do "C:\do_files\lab_bkf94.do"

Typing the command describe, we obtain:

obs:        8,625                      

vars:       9                             31 Oct 2006 13:48

size:       285,087 (99.6% of              memory free)                                     

storage  display  value

variable name     type         format                   label                      variable label

weight                   float        %9.0g                                                   Sampling weight

size                        byte        %8.0g                                                   Household size

strata                     byte        %8.0g                                                   Stratum in which a household lives

psu                        byte        %8.0g                                                   Primary sampling unit

gse                        byte        %29.0g                 gse                        Socio-economic group of the household head

sex                         byte        %8.0g                   sex                         Sex of household head

zone                       byte       %8.0g                    zone                       Residential area

exp                         double  %10.0g                                                 Total household expenditures

expeq                    double  %10.0g                                                 Total household expenditures per adult equivalent

exppc                     float       %9.0g                                                   Total household expenditures per capita

Typing label list, we find:

zone:

                1             Rural

                2             Urban

sex:

                1             Male

                2             Female

gse:

                1             wage-earner (public sector)

                2             wage-earner (private sector)

                3             Artisan or trader

                4             Other type of earner

                5             Crop farmer

                6             Food farmer

                7             Inactive

Q.2

You can set the sampling design with a dialog box, as indicated in Section 14.3, or simply by typing

svyset psu [pweight=weight], strata(strata) vce(linearized)

Typing svydes, we obtain

Q.3

Type bd ifgt to open the dialog box for the FGT poverty index and choose variables and parameters as indicated in the following window. Click on Submit.

The following results should then be displayed:

Q.4

Select Relative for the poverty line and set the other parameters as above.

After clicking on Submit, the following results should be displayed:

Q.5

Set the group variable to sex.

Clicking on Submit, the following should appear:

Q.6

Using the panel Confidence interval, set the confidence level to 99 % and set the number of decimals to 4 in the Results panel.