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  • Inequality analysis

    Hi,
    I’am new in this forum, I don’t know if I posted in good place for my question, this is my first message. I’am taking class about Inequality analysis, as i’am new in Stata, I have problem with some commands used. I didn’t understand the following code:
    gen transfer = 0
    loca total_transfers = 0
    local limit = 0
    while `total_transfers' < 300 {
    qui replace transfer=max(0, `limit'-income)
    qui sum transfer
    local total_transfers=r(sum)
    local limit = `limit'+1
    }
    I understood the first line of the code, but the rest is not clear for me. Could you help me for understanding please? Thanks very much
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