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This analytical tool illustrates how to decompose inequality measures by income sources. In particular, it discusses this decomposition in the context of the Gini and the Theil Indexes. A step-by-step procedure and numerical examples give operational content to the tool. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Lorenz Curves. EASYPol Series 001 Inequality Analysis: The Gini Index. EASYPol Series 040 Describing Income Inequality. Theil Index and Entropy Class Indexes. EASYPol Series 051 Policy Impacts on Inequality: Decomposition of Income Inequality by Subgroups. EASYPol Series 052 This paper is part of [...]

This analytical tool illustrates how to decompose inequality measures by subgroups of populations. In particular, it defines the concepts of within and between inequality and analyses how different inequality indexes perform with respect to this decomposition. In particular, the performance of the analysis of variance, the Gini Index and the Theil Index will be discussed. A step-by-step procedure and numerical examples give operational content to the tool. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Lorenz Curves. EASYPol Series 001 Inequality Analysis: The Gini Index. EASYPol Series 040 Describing [...]

This analytical tool illustrates the entropy class of inequality indexes. In particular, it shows how different inequality indexes may be obtained by using a general definition (class) of indexes by assigning different values to a fixed parameter. A step-by-step procedure and numerical examples then show how to move from conceptual to operational ground. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Lorenz Curves. EASYPOl Series 001 Social Welfare Analysis of Income Distributions: Ranking Income Distributions with Crossing Generalised Lorenz Curves. EASYPol Sereis 003 Inequality Analysis: The Gini Index. EASYPol [...]

This analytical tool illustrates one of the most popular welfare-based measures of inequality, the Atkinson Index . In particular, it discusses the foundations of this Index, in terms of social welfare specifications, and the concept of equally distributed equivalent income on which the measure is based. The use of this measure is then exemplified in a step-by-step procedure and in a numerical example. For further information, see also: Impacts of Policies on Poverty: Distributional Poverty Measures Poverty Analysis: Poverty and Dominance Social Welfare Analysis of Income Distributions: Social Welfare, Social Welfare Functions and Inequality Aversion This paper is part of the FAO Policy series: EASYPol-Resources [...]

There are four main reasons for which agriculture in sub-Saharan Africa (SSA) deserves more public support.  First is a moral imperative: SSA governments cannot and should not ignore a sector on which about 70 percent of their population directly depend for their livelihoods, if they are serious about their commitment to MDG1. Second, in spite of their generally poor performance, SSA countries do not have any realistic strategic option that they can rely upon for achieving sustainable economic development, other than agriculture. Third, there is evidence that appropriate policies and direct public sector investment have combined to trigger agriculture sector-led [...]

This analytical tool illustrates how some simple poverty measures may be linked with dominance conditions between particular types of curves. This strongly resembles the dominance conditions already set out in the case of Lorenz curves1. In particular, dominance conditions will be derived for the headcount ratio and for the Foster-Greer-Thorbecke (FGT) measures showing that, under certain conditions, the poverty line specification is not necessary. This module also introduces the concept of the Three I’s of Poverty (TIP) curve. As a way to analyse poverty, this module is based on a different approach to poverty measurement. Nor does it recourse to [...]

This analytical tool illustrates how to use objective methods to derive Equivalence scales. The focus will be on the Engel method, on the Rothbarth method and on the Utility-based methods. The main difference between these methods is that the first two are based on proxy variables for the household well-being, while the last set of methods is based on the consideration of the overall preferences revealed by consumers. For further information, see also: Equivalence Scales: General Aspects. EASYPol Series 032 Equivalence Scales. Subjective Methods. EASYPol Series 033 This paper is part of a FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development [...]

This analytical tool illustrates how to use subjective methods to derive equivalence scales. Different methods exist, but the focus will be on parametric methods. These methods are based on the definition of two broad sets of parameters. The first defines the degree of economies of scale within any given household; the second defines how much any further member adds to the cost of running a family. As we will see, the two concepts are linked, giving rise to a variety of ways to parameterise equivalence scales. For further information, see also: Impacts of Policies on Poverty. The Definition of Poverty. EASYPol Series [...]

This analytical tool illustrates how inequality and poverty analysis may be carried out when the income distribution is defined over households (i.e. household incomes) and not over individuals (i.e. individual incomes). When household incomes are considered, a problem arises with regard to the possibility of comparing monetary incomes of different households with different numbers of inhabitants. In this case, and as described in this module, a correction should be made to meaningfully compare different situations. This correction is called an equivalence scale. An equivalence scale may be a simple per capita measure or a more sophisticated way to take into [...]

This paper examines the main characteristics of agricultural inputs and marketing services, including factors affecting demand and supply for major categories of services, namely fertilizers and chemicals, seeds and planting materials, agricultural machinery and equipment, and crop marketing. The main sources of market failure are outlined. The conceptual framework which underpin the main approaches to decentralization of these services and key factors that need to be considered are next discussed. The importance of the regulatory role and adoption of a regulatory strategy are highlighted. Policy implications, in terms of possible options for decentralization (divestment, deconcentration, devolution and establishing partnerships), and [...]