APPENDIX 3: Exercises
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1. Create three variables: per capita food expenditure (call it pcfood), per capita nonfood expenditure (call it pcnfood), and per capita total expenditure (call it pcexp). Now let’s look at the consumption patterns.
Average per capita expenditure
By region Whole Dhaka region Chittagong region Khulna region Rajshahi region By gender of head Male-headed households Female-headed households By education level of head Head has some education Head has no education By household size Large house hold (>5) Small household ( 5) By land ownership Large land ownership (>0.5 acres/person) Small land ownership or landless
pcfood
pcexp
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Summarize your findings on per capita expenditure comparison.
2. Now add another measure of household size, which takes into account the fact that children consume less than adults. Assume that a child (age < 15) will be weighted as 0.75 of an adult. For instance, a household consisting of a couple with one child age 7 is worth 2.75 on this adult-equivalence scale, instead of 3. Go back to the ind.dta and create this variable (call it famsize2), then merge the revised file with the household data and the consumption data files. Create peradult-equivalent expenditure variables (let’s call them pafood and paexp) and repeat the exercise above.
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