USER MANUAL DASP version 2.1 DASP: Distributive Analysis Stata Package By Abdelkrim Araar, Jean­Yves Duclos Université Laval PEP, CIRPÉE and World Bank November 2009 Table of contents Table of contents............................................................................................................................. 2 List of Figures .................................................................................................................................. 5 1 Introduction ............................................................................................................................ 7 2 DASP and Stata versions ......................................................................................................... 7 3 Installing and updating the DASP package ........................................................................... 8 3.1 installing DASP modules. ............................................................................................... 8 3.2 Adding the DASP submenu to Stata’s main menu. ....................................................... 9 4 DASP and data files ................................................................................................................. 9 5 Main variables for distributive analysis ............................................................................. 10 6 How can DASP commands be invoked? .............................................................................. 10 7 How can help be accessed for a given DASP module? ....................................................... 11 8 Applications and files in DASP ............................................................................................. 11 9 Basic Notation ....................................................................................................................... 13 10 DASP and poverty indices ................................................................................................ 13 10.1 FGT and EDE‐FGT poverty indices (ifgt). .................................................................... 13 10.2 Difference between FGT indices (difgt) ...................................................................... 14 10.3 Watts poverty index (iwatts). ...................................................................................... 15 10.4 Difference between Watts indices (diwatts) .............................................................. 15 10.5 Sen‐Shorrocks‐Thon poverty index (isst). ................................................................. 15 10.6 Difference between Sen‐Shorrocks‐Thon indices (disst) ......................................... 16 10.7 DASP and multidimensional poverty indices (imdpov) ............................................ 16 11 DASP, poverty and targeting policies ............................................................................... 18 11.1 Poverty and targeting by population groups ............................................................. 18 11.2 Poverty and targeting by income components ......................................................... 19 12 Marginal poverty impacts and poverty elasticities ........................................................ 20 12.1 FGT elasticity’s with respect to the average income growth (efgtgr). ..................... 20 12.2 FGT elasticity’s with respect to Gini inequality (efgtineq). ....................................... 21 12.3 FGT elasticities with respect to within/between group components of inequality (efgtg). ........................................................................................................................................ 22 12.4 FGT‐elasticities with respect to within/between income components of inequality (efgtc). ........................................................................................................................................ 23 13 DASP and inequality indices ............................................................................................ 25 13.1 Gini and concentration indices (igini) ........................................................................ 25 13.2 Difference between Gini/concentration indices (digini) .......................................... 25 13.3 Generalised entropy index (ientropy) ........................................................................ 26 13.4 Difference between generalized entropy indices (diengtropy) ................................ 26 13.5 Atkinson index (iatkinson) ......................................................................................... 27 13.6 Difference between Atkinson indices (diatkinson) .................................................. 27 13.7 Coefficient of variation index (icvar) .......................................................................... 28 13.8 Difference between coefficient of variation (dicvar) ................................................. 28 13.9 Quantile/share ratio indices of inequality (inineq) .................................................. 28 13.10 Difference between Quantile/Share indices (dinineq) .......................................... 29 14 DASP and polarization indices ......................................................................................... 29 2 14.1 The DER index (ipolder) .............................................................................................. 29 14.2 Difference between DER polarization indices (dipolder) ......................................... 30 14.3 The Foster and Wolfson (1992) polarization index (ipolfw) ................................... 30 14.4 Difference between Foster and Wolfson (1992) polarization indices (dipolfw) .... 31 14.5 The Generalised Esteban, Gardin and Ray (1999) polarisation index (ipoger) ...... 31 14.6 The Inaki (2008) polarisation index (ipoger) ............................................................ 32 15 DASP and decompositions. ............................................................................................... 36 15.1 FGT Poverty: decomposition by population subgroups (dfgtg) ............................... 36 FGT Poverty: decomposition by income components using the Shapley value (dfgts) ............ 37 15.2 F GT Poverty: decomposition by income components using the Shapley value (dfgts) 39 15.3 Decomposition of the variation in FGT indices into growth and redistribution components (dfgtgr). ................................................................................................................ 41 15.4 Decomposition of FGT poverty by transient and chronic poverty components (dtcpov) . ................................................................................................................................... 42 15.5 Inequality: decomposition by income sources (diginis) ........................................... 44 15.6 Regression based decomposition of inequality by income sources ......................... 46 15.7 Gini index: decomposition by population subgroups (diginig). ............................... 51 15.8 Generalized entropy indices of inequality: decomposition by population subgroups (dentropyg). ........................................................................................................... 52 15.9 Polarization: decomposition of the DER index by population groups (dpolag) ...... 52 15.10 Polarization: decomposition of the DER index by income sources (dpolas) ....... 53 16 DASP and curves................................................................................................................ 53 16.1 FGT CURVES (cfgt). ....................................................................................................... 53 16.2 FGT CURVE with confidence interval (cfgts). ............................................................. 55 16.3 Difference between FGT CURVES with confidence interval (cfgts2d). .................... 55 16.4 Lorenz and concentration CURVES (clorenz). ............................................................ 55 16.5 Lorenz/concentration curves with confidence intervals (clorenzs). ....................... 56 16.6 Differences between Lorenz/concentration curves with confidence interval (clorenzs2d) .............................................................................................................................. 57 16.7 Poverty curves (cpoverty) ........................................................................................... 57 16.8 Consumption dominance curves (cdomc) .................................................................. 58 16.9 Difference/Ratio between consumption dominance curves (cdomc2d) ................. 59 16.10 DASP and the progressivity curves ......................................................................... 59 16.10.1 Checking the progressivity of taxes or transfers .............................................. 59 16.10.2 Checking the progressivity of transfer vs tax ................................................... 60 17 Dominance ......................................................................................................................... 60 17.1 Poverty dominance (dompov) ..................................................................................... 60 17.2 Inequality dominance (domineq) ................................................................................ 61 17.3 DASP and bi‐dimensional poverty dominance (dombdpov) .................................... 61 18 Distributive tools .............................................................................................................