The Multidimensional Poverty Index Mpi Complements Monetary Measures Of Poverty

The Multidimensional Poverty Index (MPI) complements monetary measures of poverty by considering overlapping deprivations suffered by individuals at the same time. The dataset Peru.xls provides 1,520 observations of monthly income per capita (ypcf_ppp05) in 7 regions in Peru. In addition, it provides dummy variables for access to water, sewer, electricity, phone and the ability to read (where 1=Yes and 0=No) and number of years of education. Please answer the following questions. Out of these six dimensions, a person is considered poor under the MPI if it lacks access to 4 or more of these services/dimensions.

1. Calculate the MPI. Please take into account that a person fails the years of education dimension if it has less than 7 years of education. MPI poverty rate_________

2. Calculate the poverty headcount. The poverty line is 120.8. The national poverty headcount is _____

3. Fill out the following table with the number of people in each category: 

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