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# Using household consumption expenditures, calculate the poverty measures P0, P1, P2, and Ps

INSTRUCTIONS TO CANDIDATES

Problem Set 2

To answer the questions, please write your own code to create the statistics, rather than using a pre-written program such as the povdeco command. The STATA do file must work, meaning it should both run without errors and produce the results you discuss in your answers to the questions. Additionally, an excel, LibreOffice calc, or google spreadsheet is fine if you use that

to generate some of the tables using the results of your STATA code, etc.

1. Using household consumption expenditures, calculate the poverty measures P0, P1, P2, and Ps at the individual level for the population as a whole, by sex, and by age category. Make a table for the overall results and one for each characteristic, including the values of the measures.

How does the incidence, depth and severity of poverty differ across the sub-groups of the population?

2. Produce a table of consumption poverty statistics (just headcounts, gaps, and intensities, no Sen Index) at the household level (use the variable head to identify household records) in Ethiopia using both the official poverty line and the LIMTIP poverty line for all of Ethiopia, by age category and by sex of the household head.

How do the poverty statistics (headcount, gaps, and intensities) compare when using the LIMTIP poverty line as opposed to the official poverty line?

3. Produce a table of time poverty rates overall, by age category, and by sex (hint: use the time deficit variable, which is available only for adults). How does time poverty differ by sex? By age?

How do these patterns compare to the consumption poverty statistics you produced, especially hidden poverty? How are they related?

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