help for mpovlineJoao Pedro Azevedo
Viviane Sanfelice

Calculate FGT0, FGT1 and FGT2 by intervals of multiple welfare lines.

mpovline
welfarevar
[weight]
[if exp]
[in exp],
[
varpl(varname)
lines(numlist)
indicator(string)
mpl(numlist)
max
]

fweights and aweights are allowed; see help weights. See help weight.

Description

mpovline calculate FGT0, FGT1 and FGT2 by intervals of multiple welfare lines. It is useful to calculate
headcount for the poor, vulnerable and middle class lines as proposed by Ferreira et al (2012), and the respective
FGT1 and FGT2 reported by Azevedo and Sanfelice (2012).

Where

welfarevar is the welfare aggregate variable.

Options

varpl(varname) poverty line variables.

lines(numlist) sets of values for the poverty lines.

indicator(string) poverty indicators. fgt0, fgt1, fgt2 are the currently supported options. fgt0 is the indicator default.

mpl(numlist) to calculate the poverty indicators by range using multiples of the poverty line. Must be combined with the varpl option

max poverty indicators for the range between the last line and the maximun value of welfarevarIt is quite sensitive to outliers.

Saved Results

mpovline returns results in r() format.
By typing return list, the following results are reported:

Matrices

r(b) matrix in long format. The first column represents the index used, the sencond the range of the poverty line used and the last column reports the poverty numbers.

r(fgt) short version of the matrix r(b) with results by indicator. r(fgt0), r(fgt1) and r(fgt2) if indicator option specified.

r(obs) matrix with the number of observation by range of the lines.

Obs: On the reported matrices

Indicator label: 0 - FGT(0); 1 - FGT(1); 2 - FGT(2).

Line label: 1 represents the first range; 2 the second, and so on. The last number indicates the range from the last line and the maximun value if the option max is specified.

Examples

. mpovline percapitainc, varpl(pline1 plin2)

. mpovline percapitainc [w=weight], line(100 500) in(fgt0 fgt1 fgt2)

. mpovline percapitainc [w=weight], varpl(pline) mpl(1 3.5 6)

Headcount for moderate poverty, vunerable and middle class in terms of $4USD a day, $4 to 10USD a day and $10 to 50USD a day, respectively.

. mpovline percapitainc [w=weight], varpl(lp_4usd_ppp) mpl(1 2.5 12.5)

or

. mpovline percapitainc [w=weight], line(121.68 304.2 1521)

or

. mpovline percapitainc [w=weight], varpl(lp_4usd_ppp lp_10usd_ppp lp_50usd_ppp)

References

Azevedo, Joao Pedro and Viviane Sanfelice (2012) "The rise of the middle class in Latin America". World Bank (mimeo).

Ferreira, Francisco H.G.; Messina, Julian; Rigolini, Jamele; López-Calva, Luis-Felipe; Lugo, Maria Ana; Vakis, Renos. (2013) Economic Mobility and the Rise of the Latin American Middle Class. Washington, DC: World Bank.
(link to publication)

Foster, James; Joel Greer and Erik Thorbecke (1984) "A class of decomposablepoverty measures". Econometrica. 2 81: 761–766.

Lopez-Calva, Luis F. and Eduardo Ortiz-Juarez (2011) "A Vulnerability Approach to the Definition of the Middle Class". Policy Research Working Paper, World Bank, n. 5902.

Authors

Joao Pedro Azevedo, jazevedo@worldbank.org

Viviane Sanfelice, vsanfelice@worldbank.org

Acknowledgements

This program was developed by the LAC Team for Statistical Development (2012), in the Latin American and Caribbean Poverty Reduction and Economic Managment Group of the World Bank.

Also see

Online: help for apoverty; ainequal; wbopendata; adecomp; drdecomp; skdecomp (if installed)