All tables and figures should be numbered and fully titled, e.g. Figure 1: Histogram of average per capita income, 1975 and 2009.
All work must be concise and presented clearly. Write in complete and correct English sentences. Do not just give a number as an answer. Students lose points for unclear or incomplete presentation of data and findings.
If the person reading and grading your assignment cannot understand what you are trying to say, they cannot give you full credit for your ideas.
For full credit, please note which Stata command you used to obtain each part of the answer to each question
1. Calculate the average level of real per capita income in 1975 and in 2009 for the countries in the region of Asia. Report the minimum, average and maximum per capita income. Plot and report histograms of income for 1975 and 2009. What do the distributions look like and how has the distribution of income changed over this time period?
2. Generate a new variable measuring the growth rate of real per capita income over the time period 1975 to 2009 for each country in the dataset. (Hint: the growth rate is the change in value divided by the original value.) Use the list command to list the growth rates by country and to look at the data (you do not need to report the list in your writeup). Next, report the minimum, average, and maximum growth rate for the countries in the data set, and show a histogram of the growth rates. Report the minimum, average, and maximum growth rates for countries in Asia and in Africa. What does the distribution of growth rates demonstrate? Do most countries grow at about the same rate? What are the fastest and the slowest growing countries in the African dataset? Is the difference in the growth rates in African countries about the same as the difference between the fastest and slowest growing counties elsewhere in the world?
3. Produce box plots of the GDP per capita for the countries in the regions of Asia and Africa in 1975. Discuss what you see in the plots. Now produce a log transformation of the measure of 1975 GDP. Plot four box plots side-by-side, one for each region with and without the logged value of GDP. Explain why the plots that use logged values differ from the plots that do not. Provide an interpretation of the difference in GDP per capita between Asian and African countries in 1975
4. Take the maximum growth rate for an African country that you calculated in Question 2 and apply it to the poorest African country in 1975. Then take the minimum growth rate for an African country that you calculated in Question 2 and apply it to the richest African country in 1975. How would these different growth rates affect the level of income of these countries as of 2009? Explain your calculations. [Hint: reverse the calculation you made in Question 2 to solve for GDPPC 2009.] What do your results imply about the importance of long-run growth?
5. Sort the country data for all countries in the world by the growth rates you calculated in Question 2. Identify and report the 10 fastest growing and the 10 slowest growing countries in the dataset. What do you see in common among the fast growers? What about the slow growers? Do you notice anything about the geography of the fast growers compared with the slow-growers?
Attachment:- hw1.rar