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4. Algoritmos genéticos paralelos

4.2. Paralelización global

The monetary approach defines child poverty with respect to only financial matters, more

specifically, in the context of household income from a predefined line of poverty (Gillie, 1996;

Ravallion, 1998; Stigler, 1954). When estimating poverty by means of financial matters, the

indicators of child poverty measurements mainly use revenue and expenditure of households (for

detail, refer to Chapter 3.2.1.3). Despite its drawbacks and limitations, the monetary approach to

child poverty measurements was used for practicality and data availability reasons.

The poverty impact of each of these scenarios was measured using the P-alpha measure in the

Foster-Greer-Thorbecke (FGT) index of poverty measurement proposed by Foster et al. (1984).

These include poverty rate (P0) [headcount ratio], poverty gap (P1) [the depth of poverty], and

the severity of poverty (P2) [squared poverty gap].

       

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5.7.2.1. Poverty rate (P0) [headcount ratio]

In this research, the poverty rate (P0) defines the proportion of poor in the population, whose

income or consumption fell below the absolute poverty line of R450 per capita per month. The

poverty rate (P0) is specified as α = 0, and the formula reduces to

N H

FGT =0 , which is the

headcount ratio (P0), or the fraction of the population which lives below the poverty line.

5.7.2.2. Poverty gap (P1) [the depth of poverty]

The poverty gap (P1) shows the average distance of the population from the absolute poverty

line of R450 per capita per month, with the non-poor given a distance of zero. It is a measure of

the poverty deficit of the entire population specified by α = 1, the formula

being

=       − = H i z y z N FGT 1 1 1 1

. In general, it is the amount of income necessary to bring everyone

in poverty right up to the poverty line, divided by total population. This can be thought of as the

amount that an average person in the economy would have to contribute in order for poverty to

be eliminated.

5.7.2.3. The severity of poverty (P2) [squared poverty gap]

The P2 is a measure of poverty severity and takes into consideration distance separating the poor

from the poverty line. It takes into account the inequality among the poor. It is indicated by α =

2, and the formula is

2 1 1 2 1

=       − = H i z y z N

FGT , which is the squared poverty gap (P2).

       

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5.7.2.4. Gini co-efficient

The Gini co-efficient usually measures societal welfare inequalities t. Amiel and Cowell (1999)

stated that the Gini co-efficient measures the degree of inequality within a society. According to

them, if the Gini co-efficient is 0, it means there is absolute equality, and 1 indicates absolute

inequality/concentration.

5.7.2.5. Beneficiaries

Creedy et al. (2002), indicated that any kinds of government taxation system, (direct or indirect

tax), will have the potential to affect every citizens disposable income. Every tax policy change

involves the losers and gainers from the system. In accordance with the research question, this

indicator investigates and measures the number of beneficiaries of the Child Support Grant in

implementing various policy scenarios.

5.7.2.6. Budgetary implication

This indicator helps to measure the effect that specific policy scenarios have on the national

budget and the Treasury. If the funds show an excess of income over expenditure, this will

indicate that the programmes are having a favourable effect on the budget and vice versa if fund

expenditure exceeds income. The budgetary implication assessments are intended to convey the

adequacy of the financing arrangements established for the programmes.

       

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Scenario-1(Indicators) 1. Poverty and inequality (P0, P1, P2 and GI) 2. No of beneficiaries (distributional effect) 3. Budgetary effect (Estimated annual expenditure)

Scenario-V (Indicators) 1. Poverty and inequality (P0, P1, P2 and GI) 2. No of beneficiaries (distributional effect) 3. Budgetary effect (Estimated annual expenditure)

Scenario- III (Indicators)

1. Poverty and inequality (P0, P1, P2 and GI) 2. No of beneficiaries (distributional effect) 3. Budgetary effect (Estimated annual expenditure)

Scenario-II (Indicators) 1. Poverty and inequality (P0, P1, P2 and GI) 2. No of beneficiaries (distributional effect) 3. Budgetary effect (Estimated annual expenditure)

Scenario-IV (Indicators)

1. Poverty and inequality (P0, P1, P2 and GI) 2. No of beneficiaries (distributional effect) 3. Budgetary effect (Estimated annual expenditure)

Scenario-V: Modelling of Child Support Grant through rolling-out for Universalizing Child Support Grant up to the age of 18 years old and policy rule that provides R210 per child per month

Scenario-IV: Modelling of poverty and inequalities profile of people living in households with/without children under the 2007 population baseline and 2008 government policy rules, but the Child Support Grant isgiven up to the age of 18 years old and the policy rule provides R210 per child per month;

Scenario-III: Modelling of poverty and inequalities of people living in households

with/without children under the 2007 population baseline and 2008 government policy rules, but the Child Support Grant given up to the age of 15 years old and policy rule that provides R210 per child per month

Scenario-II: Modelling of poverty and inequalities of people living in households with

children under the 2007 population baseline and 2008 government policy rules, i.e. Child Support Grant given up to the age of 13 years old and policy rule that provides R210 per child per month

Scenario-I : Modelling of poverty and inequalities of households for people living in households with/without children in the absences of Child Support Grant

Figure 5:1 Analysis framework used for assessing policy scenarios8 and indicators of measurements

Source: Own compilation

8

The calculations are done on the basis of the assumption of full-take up of the grant for each of the scenarios; in practice it is likely that 100% take up will not be achieved

       

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