Use the two income distributions in exercise 13.17 to evaluate the Foster-GreerThorbecke poverty measure for a = 2. Pool the distributions to evaluate the poverty measure for the total population. Show that the measure is a weighted sum of the measures for the individual distributions.
Exercise 13.17
Given the income distributions
(1; 2; 2; 5; 5; 5; 7; 11; 11; 12; 20; 21; 22; 24);
(2; 3; 3; 4; 4; 5; 7; 7; 11; 11; 12; 20; 21; 24);
And a poverty line of z = 6, calculate the Sen poverty measure. Explain the values obtained for the two distributions.