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FGT_CI: Stata module to calculate and decompose Foster–Greer–Thorbecke (and standard) concentration indices

Marcel Bilger

Statistical Software Components from Boston College Department of Economics

Abstract: This command combines two of the most widely used measures in the inequality and poverty literatures: the concentration index (CI) and the Foster–Greer–Thorbecke (FGT) metric. It does so by applying the FGT transformation to a variable of interest (depvar) and by calculating the CI of the transformed variable after ranking the observations according to a socioeconomic status variable rankvar. The command also decomposes the resulting FGT-CI by means of a two-part model (TPM) to determine how the factors listed in indepvars are associated with overall socioeconomic inequality. The command further decomposes the contribution of each factor to the overall socioeconomic inequality into the association of each factor with the dependent variable (obtained from the TPM regression) and its distribution according to socioeconomic status (computed with factor-specific CIs). Also note that the command can be applied to calculate and decompose the standard CI as it is a special case of the FGT_CI when no threshold or ceiling apply. The command saves its results in e().

Language: Stata
Requires: Stata version 13.1 and twopm, concindc, and bsweights from SSC (q.v.)
Keywords: inequality; poverty; concentration; FGT; two-part model (search for similar items in EconPapers)
Date: 2017-07-01
Note: This module should be installed from within Stata by typing "ssc install fgt_ci". The module is made available under terms of the GPL v3 (https://www.gnu.org/licenses/gpl-3.0.txt). Windows users should not attempt to download these files with a web browser.
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Downloads: (external link)
http://fmwww.bc.edu/repec/bocode/f/fgt_ci.ado program code (text/plain)
http://fmwww.bc.edu/repec/bocode/f/fgt_ci.sthlp help file (text/plain)

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