STATA Programming Code
The STATA Programming script available for download is a comprehensive program that analyzes the Integrated Household Survey data from countries interested in computing consumption aggregates based on the income or expenditure approach. The script follows a detailed methodological approach for data cleaning, variable creation, and analysis, focusing on poverty and consumption expenditure aggregates.
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Data Preparation and Cleaning
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The script begins by setting up the environment, defining global paths for data storage, and configuring STATA settings for optimal performance. It then loads various datasets, such as household, agriculture, fisheries, and community modules, which are essential for the analysis. The script meticulously handles duplicate and missing values, recodes variables, and reshapes data for consistency and easy analysis. This initial step ensures the datasets are clean, uniform, and ready for subsequent analysis, just like other macroeconomic databases such as the World Development Indicators.
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Variable Creation and Transformation
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The script generates numerous variables to capture household characteristics, such as unique household IDs, geographical areas, and population weights. It also creates variables for adult equivalence and dependency ratios, which are crucial for understanding household composition. The script further computes expenditure aggregates for food, non-food, and agricultural activities by merging relevant data files and generating consumption categories. These steps are fundamental in establishing a comprehensive dataset that reflects the diverse aspects of household consumption and expenditure.
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Consumption and Poverty Analysis
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A significant portion of the script is dedicated to calculating real consumption aggregates and poverty lines. It computes per capita consumption and adjusts for inflation using Consumer Price Indices (CPI) to ensure comparability across different periods. The script processes the household data to be compatible with using the Foster, Greer, and Thornbecke (FGT) poverty measures to estimate poverty and inequality indices, providing insights into the distribution of consumption and the prevalence of poverty in the population.
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Graphical Representation and Output
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The script includes commands for generating various graphical representations, such as box plots, histograms, and density plots, to visualize the distribution of consumption aggregates. These visualizations help identify outliers and understand the overall distribution of household expenditures. Finally, the script saves the processed data and closes the log file, ensuring the results are documented and ready for further analysis or reporting.
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With over 6,000 - 10,000 lines of meticulously crafted code, this powerful STATA script is designed to be executed with a single click. It generates a comprehensive database that is invaluable for policymakers, economists, researchers, and analysts. The script's robust processing capabilities allow users to conduct further analyses, such as regression modeling and geospatial mapping, providing a solid foundation for data-driven decision-making and academic research.
