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Re: st: poverty/inequality analysis

From   Lola Jackson <>
To   "" <>
Subject   Re: st: poverty/inequality analysis
Date   Mon, 21 Jul 2008 20:10:15 +0000 (GMT)

Dear Austin, Stas, and other Statalisters,

Thank you very much for the helpful replies. 
Austin is correct that I am working with real income data, which is not log-normal. Actually he expressed what I want to do well when he asks ‘Do
you want to apply a mean-preserving contraction (the opposite of a
mean-preserving spread) and a shift in the mean, to different degrees,
to a given distribution to achieve a specified percent below a given
threshold?’ – pretty much yes. I understand that this is not really how income evolves in practices, but the objective is to illustrate what combinations of changes in distribution and growth might be required to meet a given poverty reduction goal (and to compare this with current rates).

My thinking is that with a given Lorenz curve and given mean
income, one can calculate the % of people below a numerical poverty line (or
changes in each of these variables). So I want to work out, given a specified %
of people below the poverty line and given a specified growth rate, what would
be the change in Gini (or other measure) ‘required’; or alternatively given a
specified % of people below the poverty line and given a specified change in
Gini or other distribution measure, what would be the growth rate of mean
income ‘required’.



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