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From |
"R.E. De Hoyos" <redeho@hotmail.com> |

To |
<statalist@hsphsun2.harvard.edu> |

Subject |
st: Re: simulating poverty by changing mean income |

Date |
Sat, 3 Sep 2005 19:36:43 +0100 |

Brian,

If I am following correctly, you want to compute the change in poverty following a distribution-constant change in average income. Any inequality measure satisfying general desired properties (for example the GE family), will be scale invariant. Therefore an increase of, say, 10% in all household incomes will increase mean incomes in the same proportion without affecting inequality and surely changing your FGT measures.

Using your household data, you can simulate a distribution-constant change in average income by adjusting all (or the population subgroup that you are interested on) household incomes accordingly and then compute your FGT measures.

I hope this helps,

Rafa

________________________

R.E. De Hoyos

Faculty of Economics

University of Cambridge

CB3 9DE, UK

www.econ.cam.ac.uk/phd/red29/

----- Original Message ----- From: "Brian Sartene" <brisartene@yahoo.com>

To: <statalist@hsphsun2.harvard.edu>

Sent: Saturday, September 03, 2005 4:44 PM

Subject: st: simulating poverty by changing mean income

Dear all: I have lorenz parameters for an income measure for various groups in a household survey dataset and would like simulate poverty levels (FGT measures) by substituting various means for the actual mean. Does anyone know of a way to do this (that doesn't require starting at the very beginning, trying to derive a general quadratic equation for the lorenz, & then undertaking a lot of mathematical gymnastics)? I'd be grateful for any suggestions. Thanks very much. Brian ____________________________________________________ Start your day with Yahoo! - make it your home page http://www.yahoo.com/r/hs * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

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**References**:**st: simulating poverty by changing mean income***From:*Brian Sartene <brisartene@yahoo.com>

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