Download Users Manual for DAD 4.2 - The Software DAD

Group Number
Poverty line
alpha
k
z
α
Optional
Compulsory
Compulsory
Commands:
•
•
"Compute”: to compute the impact of the income change. To compute the standard
deviation of this estimated impact, choose the option for computing with standard
deviation.
"Graph”: to draw the value of the impact as a function of a range of poverty lines z.
To specify that range (and thus the range of the horizontal axis), choose the command
“Range”.
Inequality-neutral Targeting
The per-capita-dollar impact of a proportional marginal variation of income for the group
k, called Inequality Neutral Targeting, on the FGT poverty index P(k; z; α) is as follows:
 P(k, z; α) − zP(k , z; α − 1)
if α ≥ 1 and FGT is not normalised
α
µk

 P (k, z; α) − zP (k, z; α − 1)
if α ≥ 1 and FGT is normalised
INT = α
µk

 zf (k, z)
if α = 0
−
µk

where z is the poverty line, k is the population subgroup for which we wish to assess the
impact of the income change, and f(k,z) is the density function of the group k at level of
income z.
To compute that impact:
1- From the main menu, choose the item: " Poverty ⇒ Inequality-neutral Targeting".
2- Choose the different vectors and parameter values as follows:
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