## How to calculate wealth index in stata

Friedrich On Wed, Sep 11, 2013 at 1:03 AM, Wei Yee

## (assets) used to measure wealth may vary for urban and rural dwellers. In these the following steps to determine the household wealth index using Stata.

Using Principal Components Analysis to construct a wealth index Laura Howe James Hargreaves, Bianca De Stavola, Sharon Huttly. Wealth Index. Principal Components Analysis Index including all dummies Excluding lowest frequency dummy can result in counter-intuitive weights. Generally the way this would be done is by performing a linear regression of the wealth index over the 32 variables. The 10 coefficients with the highest magnitude (absolute value) should be the 10 that explain the most variation. Concentration indices are frequently used to measure inequality in one variable over the distribution of another. Most commonly, they are applied to the measurement of socioeconomic-related inequality in health. We introduce a user-written Stata command conindex which provides point estimates and standard errors of a range of concentration indices. The command also graphs concentration curves (and Lorenz curves) and performs statistical inference for the comparison of inequality between groups. Please can I get how to deduce the index in stata? I have many variables measuring one thing. I want to generate an index using the first principal component to run a regression. This version is for Stata versions 8.2 onwards. For versions 5 to 8.1, use ineqdeco5 instead. ineqdeco estimates a range of inequality and related indices commonly used by economists, plus optional decompositions of a subset of these indices by population subgroup. a “relative wealth” variable was created in the pooled dataset. Thus, the wealth index takes into account the distribution of assets in urban and rural areas within a given country in order to reflect each country’s economic conditions across urban and rural areas. As an example, Table 1 summarizes the results of the PCA for 3a.1. Calculate the mean Calculation of the mean is quite easy. Since we have specified the survey design above in a svyset statement, we can tell Stata to apply that survey design to our analysis with a svy: statement, then we type mean and the variable, in this case mage. The average age of mother’s who have a child

### To create proper quintiles, add a weight variable with > information on the number of household members to the -xtile- command. > > Friedrich > > On Wed, Sep 11, 2013 at 1:03 AM, Wei Yee wrote: >> Hi all, >> >> I am trying to compute a wealth index score and then categorized them >> into quintiles.

Wealth index, a summary measure of socioeconomic status (SES), is a well- known predictor of body mass index (BMI) Data were analysed using Stata 13.0. 21 Mar 2014 The results of the decomposition analysis suggest that asset index contributes [ 28], any inequality measure is expected to meet three minimal Management of data and analysis were done in Stata 12 (Stata Corp. 31 Aug 2013 Partly due to its success in determining differences in population and health indicators between the wealth quintiles, closer looks at the index The Stata Journal is indexed and abstracted by CompuMath Citation Index, butions of income or wealth, classical inequality measures such as the Gini it fails to meet some attractive conditions met by Wertz's suggested measure (WG). 5 Sep 2009 wealth. Household wealth index in quintiles (1 poorest to 5 richest). 2 We thank MEASURE DHS for their permission to make these data I have created a wealth index as recommended by Filmer and Pritchett after using the pca I predicted pc1 and pc2 using the following Forums for Discussing Stata; General; You are not logged in. You can browse but not post. Login or Register by clicking 'Login or Register' at the top-right of this page. For more information on Statalist, see the FAQ.

### If anyone can share the STATA code for calculating WI for any country that'd do me a great favor. Any clue to the method using STATA is also

Household wealth is a measure commonly used in food security assessments. It gives an idea of households' ability to access food, the severity of food insecurity Household Consumption and Wealth Indices. Introduction the question of how best to measure living standards. examples of STATA code. 9 Due to the One common reason for running Principal Component Analysis (PCA) or Factor Analysis (FA) is variable reduction. In other words, you may start with a 10-item While economists often use income to measure wealth, welfare, and other indicators of well- being, income data has limitations in both accuracy and measurement

## Stanley later expanded on this by calling it your "Wealth Equation" and defining an index called the "Wealth Index" (WX) which is simply your net worth divided by the expected wealth for your age and income.

separate papers we use the asset index to examine wealth and First, we are not proposing this asset index as a measure Station, TX: Stata Corporation. ment and the ability to work with the statistical package Stata. are the common approaches used to calculate asset indices in the literature (Filmer &. Pritchett Wealth index, a summary measure of socioeconomic status (SES), is a well- known predictor of body mass index (BMI) Data were analysed using Stata 13.0. 21 Mar 2014 The results of the decomposition analysis suggest that asset index contributes [ 28], any inequality measure is expected to meet three minimal Management of data and analysis were done in Stata 12 (Stata Corp. 31 Aug 2013 Partly due to its success in determining differences in population and health indicators between the wealth quintiles, closer looks at the index The Stata Journal is indexed and abstracted by CompuMath Citation Index, butions of income or wealth, classical inequality measures such as the Gini it fails to meet some attractive conditions met by Wertz's suggested measure (WG).

Generally the way this would be done is by performing a linear regression of the wealth index over the 32 variables. The 10 coefficients with the highest magnitude (absolute value) should be the 10 that explain the most variation.