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PRWP

Reproducibility package for A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality

2023
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Reference ID
RR_WLD_2023_PRWP-10470_v01
DOI
https://doi.org/10.60572/szbc-9p29
Author(s)
Aart Kraay, Christoph Lakner, Berk Özler, Benoit Decerf, Dean Jolliffe, Olivier Sterck, Nishant Yonzan
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Jun 26, 2023
Last modified
Jul 20, 2023
  • Project Description
  • Downloads
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata
  • Citation
  • Overview

    Abstract

    Simple welfare indices such as mean income are ubiquitous but not distribution sensitive. In contrast, existing distribution sensitive welfare indices are rarely used, often because they are difficult to explain and/or lack intuitive units. We propose a simple new distribution sensitive welfare index with intuitive units: the average factor by which individual incomes must be multiplied to attain a given reference level of income. This new index is subgroup decomposable with population weights and satisfies the three main definitions of distribution sensitivity in the literature. Variants on this index can be used as distribution sensitive poverty measures and as inequality measures, with the same simple intuitive units. We illustrate the properties of the new index using the global distribution of income across individuals between 1990 and 2019, as well as with selected country comparisons. Finally, we use the index to define the “prosperity gap” as a new measure of “shared prosperity,” one of the twin goals of the World Bank.

    Reproducibility Package

    Scripts
    Readme Get Reproducibility Package
    Link: https://reproducibility.worldbank.org/index.php/catalog/7/download/69/README.pdf
    Reproducibility package (data and code) for A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality
    Title
    Reproducibility package (data and code) for A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality
    Date
    2023-06
    Software
    Stata
    Dependencies
    pip, apoverty, ineqdeco,egenmore, wbopendata, schemepack
    Instructions
    See readme in reproducibility package
    Repository
    Reproducible Research Repository (World Bank)
    Notes
    Checked for reproducibility at Development Impact Evaluation (DIME), World Bank
    License
    Name URL
    MIT License/Modified BSD3 https://opensource.org/license/mit/
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Stata
    Name
    Stata
    Version
    17

    Reproducibility

    Technology environment

    Microsoft Windows 10 Enterprise (v. 21H2), Stata MP v17.0

    Technology requirements

    Approximate runtime 1-2 hours.

    Reproduction instructions

    A readme file with detailed instructions is part of the reproducibility package.

    Data

    Data statement

    All data is public and contained in the reproducibility package.

    Description

    Output
    A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality
    Type
    Working Paper
    Title
    A New Distribution Sensitive Index for Measuring Welfare, Poverty, and Inequality
    Authors
    Aart Kraay, Christoph Lakner, Berk Özler, Benoit Decerf, Dean Jolliffe, Olivier Sterck, Nishant Yonzan
    Description
    Policy Research Working Paper (PRWP) 10470
    URL
    https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099934305302318791/idu0325015fc0a4d6046420afe405cb6b6a87b0b
    Project website
    Authors
    Author Affiliation Email
    Aart Kraay World Bank akraay@worldbank.org
    Christoph Lakner World Bank clakner@worldbank.org
    Berk Özler World Bank bozler@worldbank.org
    Benoit Decerf World Bank bdecerf@worldbank.org
    Dean Jolliffe World Bank djolliffe@worldbank.org
    Olivier Sterck University of Oxford and University of Antwerp
    Nishant Yonzan World Bank nyonzan@worldbank.org
    Date of production

    2023-06

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Welfare Index Poverty Index Inequality Index Shared Prosperity
    Topics
    ID Topic Vocabulary Vocabulary URI
    D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement JEL Classifications
    I32 Measurement and Analysis of Poverty JEL Classifications

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    MIT https://opensource.org/license/mit/

    Contacts

    Contacts
    Name Role Affiliation Email URI
    Aart Kraay Author World Bank akraay@worldbank.org
    Reproducibility WBG reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation
    Krestel CK World Bank
    Date of Production

    2023-06-22

    Document version

    1

    Citation

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