Appendix
• In table 3.26, the national CHUC index is 19.6. This can be obtained from table A.2 using the poverty line and the national censored harmonic mean of GEL 60.6 [13,D]: 100 × (75.4 – 60.6)/75.4 = 19.6. • In table 3.26, the national SST index is 17.5. This can be obtained from table A.2 using the poverty line and the national censored Sen mean of GEL 62.2 [13,E]: 100 × (75.4 – 62.2)/75.4 = 17.5.
Elasticity of Watts Index, SST Index, and CHUC Index to Per Capita Consumption Expenditure Table A.3 presents a tool for checking the sensitivity of three poverty measures to consumption expenditure: the Watts index, the SST index, and the CHUC index. In the table, we ask what the percentage change in poverty would be if everyone’s consumption expenditure increased by 1 percent. Results are compared across 2003 and 2006. The percentage change in poverty caused by a 1 percent change in the mean or average per capita consumption expenditure is called the elasticity of poverty with respect to per capita consumption. The particular way in which we consider an increase in the average per capita consumption expenditure is by increasing everyone’s consumption expenditure by the same percentage. This type of change is distribution neutral, because the relative inequality does not change. Table A.3: Elasticity of Watts Index, SST Index, and CHUC Index to Per Capita Consumption Expenditure Watts index
SST index
CHUC index
2003
2006
Change
2003
2006
Change
2003
2006
Change
A
B
C
D
E
F
G
H
I
Poverty line = GEL 75.4 1
Urban
−2.00
−2.11
−0.11
−1.81
−1.88
−0.07
−1.78
−1.91
2
Rural
−1.76
−1.69
0.07
−1.57
−1.50
0.07
−1.48
−1.44
−0.12 0.04
3
Total
−1.86
−1.87
−0.01
−1.68
−1.67
0.00
−1.60
−1.63
−0.02 −0.24
Poverty line = GEL 45.2 4
Urban
−2.31
−2.49
−0.18
−2.31
−2.42
−0.12
−2.17
−2.41
5
Rural
−1.89
−1.83
0.06
−1.81
−1.73
0.08
−1.78
−1.78
0.00
6
Total
−2.04
−2.06
−0.01
−2.00
−1.98
0.01
−1.93
−1.99
−0.06
Source: Based on ADePT Poverty and Inequality modules using Integrated Household Survey of Georgia 2003 and 2006. Note: Change is shown between years 2003 and 2006. CHUC = Clark-Hemming-Ulph-Chakravarty; SST = Sen-Shorrocks-Thon.
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