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


ARE/ECN 115A

 

 

PROBLEM SET 1: INCOME, POVERTY & INEQUALITYIN RURAL MEXICO

 

 

You obtain use basis from the 2008 Mexico National Countrified Common Superintend to examine destitution in countrified Mexico.[1]You may claim that the basis were generated from a weak stray exemplification in which the population of cause is all commons in countrified Mexico. For artlessness, claim that each common has a one part. The common basis finish determined “Mexico Common Data” is available on SmartSite.  This basis set contains the aftercited variables for the 1,437 exemplificationd commons:

 

·         ID:  The common identifying code

·         Yi:The common’s proceeds in 2007, excluding synod make-overs

·         Ti: The equality of proceeds make-overred from the synod to common i

 

1.      What is your worth of medium common proceeds excluding synod make-oversfor countrified Mexico in 2007?  In correspondent this inquiry, narration the aftercited:

 

a.       The exemplification medium, : ______

b.      The exemplification antagonism, : ______

c.       The antagonism of the exemplification medium, : ______

d.      The type falsity of the exemplification medium, : ______

e.       The 95% faith season of the exemplification medium, 95% C.I.: _________

 

2.      In the year of the superintend, the per-capita prop destitution sequence in countrified Mexico was 7,596 pesos.  Based on this prop destitution sequence, proportion the destitution headcount protest and aggregate destitution gap. Below, narration and briefly explain what each one mediums.

 

a.   The Destitution Headcount Index:

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

c.   The Squared Destitution Gap Index:

 

Mexico has two deep synod programs that make-over proceeds to countrified commons.  The primeval is PROCAMPO, which pays a unwandering equality per acre to farmers who grew basic grains preceding to the North American Free Trade Agreement (NAFTA).  The goal of PROCAMPO was to reinstate pre-NAFTA output worth props, which were no longer perceiven lower NAFTA. The second is OPORTUNIDADES, a well-being program that gives payments to weak women supposing that their progeny are enrolled in schools and entertain vigor check-ups. Let’s circumvent the commons that entertaind some make-overs Recipients andthose that entertaind no make-overs Non-Recipients.

 

3.      Fill in the consultation adown, where  now denotes common proceeds including synod make-overs.

 

 

Recipients

Non-Recipients

 

 

 

 

 

 

 

 

95% C.I.

 

 

 

4.      What is the variety in proceeds including make-overs among case and non-case commons?

 

a.       Income variety:

b.      Is this variety statistically suggestive?  How do you perceive?

c.       Is this variety economically suggestive?  Briefly prop your response.

 

5.      Compute the Gini protest for case and non-case commons. 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 cases:

b.      Gini protest for non-recipients:

 

6.      Construct two Lorenz curves, one for cases and another for non-recipients. First, knot the commons into impure proceeds categories as defined adown. Complete the consultation, and then graph the two Lorenz curves in one graph (using abound). Do not obliviate to comprise the aim [0,0] in your graphs. When completing the consultation, complete 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%