Are/ecn 115a problem set 1: income, poverty & inequalityin rural


ARE/ECN 115A

 

 

PROBLEM SET 1: INCOME, POVERTY & INEQUALITYIN RURAL MEXICO

 

 

You procure use basis from the 2008 Mexico National Arcadian Everyday Review to examine indigence in arcadian Mexico.[1]You may wear that the basis were generated from a only purposeless pattern in which the population of profit is all everydays in arcadian Mexico. For frankness, wear that each everyday has a only limb. The everyday basis rasp denominated “Mexico Everyday Data” is adapted on SmartSite.  This basis set contains the aftercited variables for the 1,437 patternd everydays:

 

·         ID:  The everyday identifying code

·         Yi:The everyday’s proceeds in 2007, save legislation transplants

·         Ti: The aggregate of proceeds transplantred from the legislation to everyday i

 

1.      What is your consider of middle everyday proceeds save legislation transplantsfor arcadian Mexico in 2007?  In sympathetic this doubt, description the aftercited:

 

a.       The pattern balance, : ______

b.      The pattern strife, : ______

c.       The strife of the pattern balance, : ______

d.      The criterion fault of the pattern balance, : ______

e.       The 95% reliance period of the pattern balance, 95% C.I.: _________

 

2.      In the year of the review, the per-capita livelihood indigence verse in arcadian Mexico was 7,596 pesos.  Based on this livelihood indigence verse, compute the indigence headcount protest and aggregate indigence gap. Below, description and briefly explain what each one balances.

 

a.   The Indigence Headcount Index:

b.  The Aggregate Indigence Gap (not the protest):

c.   The Squared Indigence Gap Index:

 

Mexico has two ocean legislation programs that transplant proceeds to arcadian everydays.  The principal is PROCAMPO, which pays a unwandering aggregate per acre to farmers who grew basic grains former to the North American Free Trade Agreement (NAFTA).  The appearance of PROCAMPO was to re-establish pre-NAFTA output cost livings, which were no longer distinguishn adown NAFTA. The prevent is OPORTUNIDADES, a thrift program that gives payments to insufficient women supposing that their outcome are enrolled in schools and assent-to heartiness check-ups. Let’s seduce the everydays that assent-tod some transplants Recipients andthose that assent-tod no transplants Non-Recipients.

 

3.      Fill in the consultation adown, where  now denotes everyday proceeds including legislation transplants.

 

 

Recipients

Non-Recipients

 

 

 

 

 

 

 

 

95% C.I.

 

 

 

4.      What is the disagreement in proceeds including transplants between repository and non-repository everydays?

 

a.       Income disagreement:

b.      Is this disagreement statistically suggestive?  How do you distinguish?

c.       Is this disagreement economically suggestive?  Briefly living your counter-argument.

 

5.      Compute the Gini protest for repository and non-repository everydays. It would be easiest to use the Gini protest formula from page 121 of the Taylor &Lybbert quotation. (Round-off to two decimal places)

 

a.       Gini protest for repositorys:

b.      Gini protest for non-recipients:

 

6.      Construct two Lorenz curves, one for repositorys and another for non-recipients. First, clump the everydays into indelicate proceeds categories as defined adown. Complete the consultation, and then graph the two Lorenz curves in one graph (using excel). Do not overlook to apprehend the purpose [0,0] in your graphs. When completing the consultation, smooth to 1 decimal (i.e. 3.2%).

 

Recipients

Income Category

Cumulative % of Households

Cumulative % of Proceeds

1

25%

 

2

50%

 

3

75%

 

4

100%

 

 

Non-Recipients

Income Category

Cumulative % of Households

Cumulative % of Proceeds

1

25%

 

2

50%

 

3

75%

 

4

100%