please uses the povcal package on the World Bank site to calculate inequality and poverty indices for eight
countries, two from each of the continents (Africa, Asia, Europe, Latin America). you should calculate the different indices for both poverty and inequality (Head count index (FGT0), poverty gap index (FGT1) and FGT2, Gini index, Watt index, MLD (Mean Logged Deviation)) and check whether the rankings of countries are the same. They should also check the sensitivity of the poverty indices to different poverty lines.
you will need to research how these different indices are calculated and understand the strengths and weaknesses of each of the measures.you should then comment on their findings.
The povcal site can be found at:
http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTRESEARCH/EXTPROGRAMS/EXTPOVRES/EXTPOVCALNET/0,,contentMDK:21867101pagePK:64168427piPK:64168435theSitePK:5280443,00.html
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