*! version 11.2 22aug2015
help incomecdf Sean Higgins

Title

incomecdf is deprecated; see help ceqgraph cdf

Syntax

incomecdf varlist [if] [in] [weight] [, options]

pweight, fweight, aweight, and iweight are allowed; see help weights.

PPP conversion
ppp(real) PPP conversion factor (LCU per international $, consumption-based) from year of PPP (e.g., 2005 or 2011) to year of PPP; do not use PPP factor for year of household survey

cpibase(real) CPI of base year (i.e., year of PPP, usually 2005 or 2011)

cpisurvey(real) CPI of year of household survey

daily Indicates that variables are in daily currency

monthly Indicates that variables are in monthly currency

yearly Indicates that variables are in yearly currency

alreadyppp Indicates that the variables have already been converted to purchasing power parity (PPP) adjusted US dollars per day

Graph options
ytitle(string) title of y-axis

xtitle(string) title of x-axis

title(string) title of graph

subtitle(string) subtitle of graph

colors(string) string of colors for CDF lines

legend(string) legend options

lwidth(string) width of lines

nodraw suppress graph

Description

incomecdf graphs cumulative distribution functions (CDFs) of income for
different income concepts, after converting from local currency to purchasing power
parity (PPP) adjusted dollars if the ppp(real), cpibase(real), cpisurvey(real), and daily/monthly/yearly options are specified. The command produces five graphs at various levels of 'zooming in' on the x-axis and inserts
vertical poverty lines at $1.25, $2.50, $4, $10, $50, and $100 per day PPP. The graphs
are saved in the working directory as CDF`x'.gph where `x' is from the list 250
400 1000 5000 10000.

incomecdf automatically converts local currency variables to PPP dollars, using the PPP conversion
factor given by ppp(real), the consumer price index (CPI) of the year of PPP (e.g., 2005 or
2011) given by cpibase(real), and the CPI of the year of the household
survey used in the analysis given by cpisurvey(real). The year of PPP, also called base year,
refers to the year of the International Comparison Program (ICP) that is being used, e.g. 2005 or 2011.
The survey year refers to the year of the household survey used in the analysis. If the year of PPP is
2005, the PPP conversion factor should be the "2005 PPP conversion factor, private consumption (LCU per
international $)" indicator from the World Bank's World Development Indicators (WDI). If the year of
PPP is 2011, use the "PPP conversion factor, private consumption (LCU per international $)" indicator
from WDI. The PPP conversion factor should convert from year of PPP to year of PPP. In other words,
when extracting the PPP conversion factor, it is possible to select any year; DO NOT select the year of
the survey, but rather the year that the ICP was conducted to compute PPP conversion factors (e.g.,
2005 or 2011). The base year (i.e., year of PPP) CPI, which can also be obtained from WDI, should match
the base year chosen for the PPP conversion factor. The survey year CPI should match the year of the
household survey. Finally, for the PPP conversion, the user can specify whether the original variables
are in local currency units per day (daily), per month (monthly), or per year
(yearly, the default assumption).

If the variables given in varlist have already been converted to PPP dollars per day, specify the alreadyppp option and do not specify the ppp(real), cpibase(real), cpisurvey(real), or daily/monthly/yearly options.

ytitle(string) enters the title of the y-axis. The default is 'Cumulative percent of the
population.' xtitle(string) enters the title of the x-axis. The default is 'Income in $ PPP per
day.' title(string) enters the title of the graph. The default is no title.
subtitle(string) enters the subtitle of the graph. The default is no subtitle.
colors(string) lists a string of colors for the CDF curves. legend(legend_style)
specifies options for the legend. See [G] legend_option.

lwidth(linewidthstyle) specifies the line width for the curves. The default is "thin".
See [G] linewidthstyle.

nodraw suppresses the graph.

Examples

Locals for PPP conversion (obtained from WDI through the wbopendata command)

. local ppp = 1.5713184 // 2005 Brazilian reais per 2005 $ PPP

. local cpi = 95.203354 // CPI for Brazil for 2009

. local cpi05 = 79.560051 // CPI for Brazil for 2005

If income is in local currency per year

. incomecdf ym_BC yn_BC yd_BC ypf_BC [pw=s_weight], ppp(`ppp') cpibase(`cpi05') cpisurvey(`cpi') yearly

If income is in local currency per month

. incomecdf ym_BC yn_BC yd_BC ypf_BC [pw=s_weight], ppp(`ppp') cpibase(`cpi05') cpisurvey(`cpi') monthly

If income is in local currency per day

. incomecdf ym_BC yn_BC yd_BC ypf_BC [pw=s_weight], ppp(`ppp') cpibase(`cpi05') cpisurvey(`cpi') daily

Graphing options

. incomecdf ym_BC yn_BC yd_BC ypf_BC [pw=s_weight], ppp(`ppp') cpibase(`cpi05') cpisurvey(`cpi') yearly title("Cumulative Distribution Functions of Income") subtitle("Brazil") colors(red blue green sand) legend(position(5) ring(0) cols(1)) nodraw

Author

Sean Higgins, Tulane University, shiggins@tulane.edu

Reference

Commitment to Equity (CEQ) website.

Lustig, N. and S. Higgins. 2013. "Commitment to Equity Assessment (CEQ): Estimating the Incidence of Social Spending, Subsidies and Taxes Handbook." CEQ Working Paper 1.