A Unified Approach to Measuring Poverty and Inequality

Page 195

Chapter 3: How to Interpret ADePT Results

Table 3.12: Quantile PCE and Quantile Ratio of Per Capita Consumption Expenditure, 2003 Quantile PCE 50th Quantile ratio 10th 20th percentile 80th 90th percentile percentile (median, percentile percentile 90-10 80-20 90-50 50-10 (GEL) (GEL) GEL) (GEL) (GEL) (%) (%) (%) (%) Region 1 2 3 4 5 6 7 8 9 10 11

Kakheti Tbilisi Shida Kartli Kvemo Kartli Samtskhe-Javakheti Ajara Guria Samegrelo Imereti Mtskheta-Mtianeti Total

A

B

C

D

E

F

G

H

I

37.8 56.0 38.6 34.3 43.0 37.8 47.7 41.2 54.0 33.9 44.8

52.6 74.3 55.9 48.3 61.2 53.1 64.0 56.2 74.1 52.5 61.4

92.7 122.2 98.7 81.0 98.8 91.6 113.9 97.0 128.6 103.7 104.7

150.4 202.8 169.8 126.5 160.5 146.5 189.1 160.7 211.6 162.0 177.0

191.1 252.9 228.4 165.1 190.2 203.3 241.9 208.5 267.0 200.1 229.8

80.2 77.9 83.1 79.2 77.4 81.4 80.3 80.2 79.8 83.1 80.5

65.0 63.3 67.1 61.8 61.9 63.7 66.1 65.0 65.0 67.6 65.3

51.5 51.7 56.8 51.0 48.0 54.9 52.9 53.5 51.8 48.2 54.4

59.2 54.2 60.9 57.7 56.5 58.7 58.1 57.5 58.0 67.3 57.3

Source: Based on ADePT Poverty and Inequality modules using Integrated Household Survey of Georgia 2003 and 2006. Note: PCE = per capita expenditure.

B denotes the quantile PCE at the 20th percentile, column C denotes the median, column D denotes the quantile PCE at the 80th percentile, and column E denotes the quantile PCE at the 90th percentile. Columns F through I report the quantile ratios based on the quantiles reported in the first five columns. Column G, for example, reports the 80/20 ratio, computed as (quantile PCE at the 80th percentile – quantile PCE at the 20th percentile) / quantile PCE at the 80th percentile. The larger the 80/20 ratio, the larger is the gap between these two percentiles. In 2003, the quantile PCE at the 10th percentile of Kakheti is 37.8 [1,A], which implies that 10 percent of the population in Kakheti lives with per capita consumption expenditure less than GEL 37.8. Similarly, 20 percent of Kakheti’s population lives with per capita consumption expenditure less than GEL 52.6 [1,B]. In contrast, 10 percent of people in Kakheti live with per capita expenditure more than GEL 191.1 [1,E], the quantile PCE at the 90th percentile. The corresponding 90/10 measure using these two quantile PCEs is 80.2 [1,F], meaning that the gap between the two quantile PCEs is 80.2 percent of the quantile PCE at the 90th percentile. Described another way, the quantile PCE at the 90th percentile is 100 / (100 – 80.2) = 5.1 times larger than the quantile PCE at the 10th percentile. Likewise, the quantile PCE at the 80th percentile of Kakheti is GEL 150.4 [1,D], nearly three times larger than the quantile PCE at the

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