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

Author

Listed:
  • Marcel Bilger

    (Duke-NUS Medical School, Singapore)

Programming Language

Stata

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().

Suggested Citation

  • Marcel Bilger, 2017. "FGT_CI: Stata module to calculate and decompose Foster–Greer–Thorbecke (and standard) concentration indices," Statistical Software Components S458364, Boston College Department of Economics.
  • Handle: RePEc:boc:bocode:s458364
    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.
    as

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    File URL: http://fmwww.bc.edu/repec/bocode/f/fgt_ci.ado
    File Function: program code
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    File URL: http://fmwww.bc.edu/repec/bocode/f/fgt_ci.sthlp
    File Function: help file
    Download Restriction: no
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