Assignment 1 IDEC 8022 Economic Development Submit your answer by 28 Aug 2023 1. The data “hs1rt.dta” contains information on a sample of households in country X in year t, where: provid = provincial ID distid = district ID hhid = household ID nrt = household size (# of persons) expr = total household monthly expenditure wert = household weight Also, note that file “povlpro1.dta” contains information about poverty line for each province in country X in year t, where: povl = provincial poverty line (i.e., individuals with monthly expenditures below this line are considered poor) (Do not use Stata command related to poverty. Use information on household weight for the following exercises.) a. Calculate monthly expenditure per capita in each province. b. Calculate P0 (head count poverty ratio/index), P1 (poverty gap index) and P2 (poverty severity index) at provincial level in country X at time t as well as the national level indexes. c. Please calculate the average monthly expenditure per capita of the poorest one-fourth of the population in each province and define a relatively poor person as someone with a monthly expenditure below this average expenditure per capita. Calculate the proportion of the population at the provincial level that is considered relatively poor (R0) as well as the proportion at the national level. d. At the national level, compare P0 and R0. Which one is large, and why it is so? Note: Please attach your do-file along with your answer sheet (as one pdf file) when you submit.
2. The file “mig1_rev.dta” contains information on a sample of individuals in 4 cities in a certain year, where: citid = city ID hhid = household ID indid = individual ID nrt = household size (# of persons) age = individual’s age hgt = individual’s height wgt = individual’s weight lung = individual’s lung capacity mig = migrant status (1=migrant & 0=non migrant) The data “hlt.dta” contain a sample of individuals in the entire country, with the following variables: hgt = height of an individual wgt = weight of an individual age = age of an individual wert = household weight a. Using the data from “hlt.dta”, calculate the height for individuals aged 5 and below, specifically at 1.5 standard deviations (s.d.) below the mean of the height distribution, and present the results for each age. Additionally, calculate the Body Mass Index (BMI) for the same age group at 1.5 s.d. below the mean of the BMI distribution and show the results for each age b. Using the data from “mig1.dta”, calculate the number of stunted children at the age of 5 and below (i.e., =< 5) in each city. Use the threshold of 1.5 s.d. on the lower tail of height distribution by age as calculated in part a (; i.e., stunting is defined as children with a height below the threshold of 1.5 s.d. on the lower tail by age as calculated using the “hlt.dta” dataset). c. Calculate the number of undernourished children at the age of 5 and below (=< 5) in each city (by definition, undernourished children are those with a BMI below 1.5 s.d. on the lower tail of BMI distribution for the age group of 5 and below (=< 5) as calculated using the “hlt.dta” dataset). d. Do migrants tend to have stunted or undernourished children compared to non-migrants? Discuss. Note: Please attach your do-file along with your answer sheet (as one pdf file) when you submit.
3. Please read and consider the following article:
Dollar, D. and A. Kraay (2002), “Growth is good for the poor”, Journal of Economic
Growth, 7: 195-225.
a. Discuss the way that this paper defines “poor people”, particularly:
i. whether it is an absolute or relative measure? And please explain your
argument.
ii. would the two approaches (absolute or relative measure) adopted yield
equivalent results? Would this approach create issues for the analysis?
b. One conclusion of this paper is that “… our evidence does not suggest a
“trickle-down” process…”. In your own words describe why the authors
provide that conclusion.
c. In your opinion, mention one other weakness of the analysis in the paper.