Playing with inequality analysis using the DAD software- II

I will now compute Gini coefficient and Lorenz curve using the saved data in the DAD format in the file ineq_HHdata.dad created as shown in my last post.

Compute Gini coefficient with DAD

1. I opened the data file: ineq_HHdata.dad. If you check the sample design in the Edit menu, you'll see that the design parameters Stratum, PSU, LSU, and Sampling Weight are there. When I select Gini/S Gini Index from the Inequality menu, the “Configuration of distributions” popup opens. Click OK and the dialog box for configuring the computation opens:

When I select “income” for Variable of Interest and click the Compute button, I get the Gini coefficient for income. I do the same for consump(tion). Now at the graph window I click the Save button and chose to save as html file. The html file shows:

Draw Lorenz curve with DAD

2. I select Curve menu, then Lorenz, and then OK. Now I got to the Lorenze curve dialog box:

I select “income” for Variable of Interest, and click the Graph button. First, there is nothing in the graph window.

When I click “Draw”, the Lorenz curve for income is drawn. To get the 45 degree line I select Properties from the Tool menu, and tick Draw 45 degree Line, then click OK. I repeat this for consumption variable and draw both curves in the graph window. Then I add appropriate legend and title using the Tool/Properties menu and save the graph as a jpg file. The final result: