ECON 133 Study Guide - Midterm Guide: International Inequality, Lorenz Curve, Headcount
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Readings (hypothesis, why it"s important, conclusions, estimation issues (what skews results such as in endogeneity, cross section v time series, gini or another measure, how to measure income) Although clearly there are measurement errors in such data, it is also widely accepted that these data represent the best available source of information on the distribution of living standards for any country where they have been conducted. There is a relationship between poverty, economic growth and inequality. Inequality is measured using inequality gini indices and mean log deviations (mld). With respect to the world bank"s standard international poverty line of about. . 08 a day, and . 15 a day which are converted to local currencies using the bank"s 1993 ppp exchange rates for consumption, and each country"s consumer price index. The most common poverty measure is the headcount index (h), which gives the proportion of the country"s population that live in households with per capita incomes below the poverty line.
