Question

etting a poverty line exercise
You will set a poverty line based on expenditure required to consume 2,200 calories per day. The
poverty line information is as follows, in grams per person per day:
Food Grams per person, per day
cereals 397
pulses 40
milk 58
oil 20
meat 12
fish 48
potatoes 27
vegetables 150
sugar 20
fruit 20
* In principle this diet yields 2,200 Calories per person per day.
Using the dataset “prices2012.dta” which has village level data on food prices
1. Calculate the annual poverty line based on food consumption (be careful about days, weeks,
year and also about kg and gram)
2. Calculate the total poverty line which is the food poverty line plus 20% for essential nonfood expenditure.
3. Provide a descriptive analysis of the cost of reaching the poverty line, where it is highest and
why (which components)
4. Save your new .dta file under a different name (e.g. prices2012_cp.dta)
5. Repeat the exercise “using prices2005.dta”
6. Merge your two files together to create a joint dataset
ii. Poverty measurement exercise
Using the price data you have created
1. Merge with the consumption files (consumption2005 and consumption2012)
2. Calculate the number of households that are below the poverty line in both years
3. Has poverty changed over time?
4. Discuss whether larger households are poorer
5. Would this change if we take into account household composition do you think? Discuss.

Answer 1

Answer:

Nahi pata

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