One of my students had a similar problem some weeks ago.
It seems (I am guessing from the info this student sent me) that, although
ineqdeco tells you that it wonīt consider those individuals with zero
income, these zero incomes cause trouble in the estimation.
I havenīt had the time to take a look at the code to figure out what is
wrong.
Here is the info my student sent me
. use casen2000.dta, clear
. ineqdeco ymonehaj
Warning: ymonehaj has 391 values = 0. Not used in calculations
Percentile ratios for distribution of ymonehaj: all valid obs.
------------------------------------------------------------
p90/p10 p90/p50 p10/p50 p75/p25 p75/p50 p25/p50
------------------------------------------------------------
9.248 3.290 0.356 3.179 1.825 0.574
Generalized Entropy indices GE(a), where a = income difference
sensitivity parameter, and Gini coefficient
----------------------------------------------------------------------
All obs | GE(-1) GE(0) GE(1) GE(2) Gini
----------+-----------------------------------------------------------
0 |
----------------------------------------------------------------------
Atkinson indices, A(e), where e > 0 is the inequality aversion parameter
----------------------------------------------
All obs | A(0.5) A(1) A(2)
----------+-----------------------------------
| 0.23445 0.39357 0.66107
----------------------------------------------
. ineqdeco ymonehaj if ymonehaj>0
Percentile ratios for distribution of ymonehaj: all valid obs.
------------------------------------------------------------
p90/p10 p90/p50 p10/p50 p75/p25 p75/p50 p25/p50
------------------------------------------------------------
9.248 3.290 0.356 3.179 1.825 0.574
Generalized Entropy indices GE(a), where a = income difference
sensitivity parameter, and Gini coefficient
----------------------------------------------------------------------
All obs | GE(-1) GE(0) GE(1) GE(2) Gini
----------+-----------------------------------------------------------
0 |
----------------------------------------------------------------------
Atkinson indices, A(e), where e > 0 is the inequality aversion parameter
----------------------------------------------
All obs | A(0.5) A(1) A(2)
----------+-----------------------------------
| 0.23445 0.39357 0.66107
----------------------------------------------
. drop if ymonehaj==0
(391 observations deleted)
. ineqdeco ymonehaj
Percentile ratios for distribution of ymonehaj: all valid obs.
------------------------------------------------------------
p90/p10 p90/p50 p10/p50 p75/p25 p75/p50 p25/p50
------------------------------------------------------------
9.248 3.290 0.356 3.179 1.825 0.574
Generalized Entropy indices GE(a), where a = income difference
sensitivity parameter, and Gini coefficient
----------------------------------------------------------------------
All obs | GE(-1) GE(0) GE(1) GE(2) Gini
----------+-----------------------------------------------------------
| 0.97523 0.50017 0.59582 1.85478 0.52417
----------------------------------------------------------------------
Atkinson indices, A(e), where e > 0 is the inequality aversion parameter
----------------------------------------------
All obs | A(0.5) A(1) A(2)
----------+-----------------------------------
| 0.23445 0.39357 0.66107
----------------------------------------------
--------------------------------------------------------------------------
Profesor Asistente, Universidad Alberto Hurtado
Professorial Lecturer, Georgetown University
Erasmo Escala 1835, Santiago (Chile)
Phone: 692-0267
Fax: 692-0303
http://www.ilades.cl/economia/index.html
----- Original Message -----
From: "Emma Samman" <emmasamman@rocketmail.com>
To: <statalist@hsphsun2.harvard.edu>
Sent: Wednesday, April 30, 2003 6:22 AM
Subject: st: problems with using ineqdeco to calculate inequality measures
> I wondered if any ineqdeco users could help with the following problems:
>
> I have some large household survey-based datasets (about 55,000
> observations unweighted, 5 million weighted). These data are broken down
> into 52 subgroups, and designed to be representative at the level of
> each subgroup.
>
> When running ineqdeco 2 unexpected things occur:
>
> 1. it refuses to calculate General Entropy measures for the dataset
> taken as a whole (though it does so for between and within group
> components). When I don't specify any decomposition, it still will not
> calculate measures for dataset as a whole (though inequal7, for
> instance, will).
>
> 2. it leaves out several subgroups in carrying out the decompositions -
> (about 15 to 17, depending on the dataset used) - and I can't seem to
> find any systematic reason for this (the sizes of the subgroups omitted
> are equal to those included weighted or unweighted). The same problem
> occurs when the program is run with and without weights.
>
> I would be very grateful for any advice.
>
> Thank you very much in advance.
>
> Best wishes,
> Emma Samman
>
>
> *
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*
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