isopoverty generates data that can be used to plot the Inequality-Poverty, Growth-Poverty and
the Iso-Poverty curves (ECLAC, 2002; Bourguignon, 2002; Kakwani and Pernia, 2000; Bigsten and
Shimeles, 2003; Barros et al, 2005; Barros et al, 2003).
stepgrw or stepinq have to be stated otherwise the programme does not work. If the option
stepgrw is specified the ado automatically generates the Growth-Poverty data, likewise, if the
option stepinq is spefied the program it will generate the Inequality-Poverty data. If both
parameters are specified both procedures will be implemented.
Please note that in order to provider a greater flexibility on the graph options this ado does
not automatically produce any figures. The final output is stored as a matrix in the Stata
memory (please see ereturn), in order to retrive it to the data set the use will have to use
the svmat command. An illustration of a figure produced with data from this ado can be found
in the examples below.
Inequality -> r(ineqreduc)
Growth -> r(growth)
Iso-Poverty -> r(frontier)
WARNING! The Iso-Poverty is quite computationally intensive. We strongly advice the user to
first estimate the Inequality-Poverty curve and then the Growth-Poverty curve, in order to
find out the best cut off points for the data that she or he is using.
varpl(varname) provide the variable name containing the values poverty line.
pline(#) sets the value of the poverty line. The default poverty line is computed as half the
median of varname.
poverty is the default output and includes the head count ratio and the extremme poverty head
count ratio, several other poverty measures can be easily included in this output.
inequal includes the Gini and Theil inequallity measures in the output.
Barros, R. Carvalho, M. Franco, S. Ganuza E., Mendonça, R. (2005) El combate a la pobreza en
Centroamerica. UNDP and IPEA. (Apendices 2 y 3 y Capitulo 5)
Barros, R.P. Carvalho, M. Franco, S. (2003) La igualdad como estrategia de combate a la
pobreza en Panam? (Cap?tulo 6). Panama: PNUD. (link)
ECLAC (2002) Meeting the Millennium Poverty Reduction Targets in Latin America and the
Caribbean. Santiago, Chile: ECLAC-IPEA-UNDP. (link)
Bourguignon, F. (2002), "The Growth Elasticity of Poverty Reduction: explaining heterogeneity
across countries and time periods", in T. Eichler and S. Turnovsky (eds.), Growth and
Inequality, Cambridge: MIT Press.
Bigsten, A. and A. Shimeles (2003). "Prospects for a Pro-Poor Growth Strategy in Africa",
Paper presented at the WIDER Conference on Human Wellbeing and Income Inequality,
Helsinki, May.
Kakwani, N. and E.M. Pernia (2000), "What is Pro-Poor Growth", Asian Development Review
18(1): 1-16.
This module should be installed from within Stata by typing "ssc install isopoverty". Windows users should not attempt to download these files with a web browser.
Poverty; Inequality; Iso-Poverty
João Pedro Azevedo
jazevedo@worldbank.org
World Bank
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