# st: RE: Re: problems with using ineqdeco to calculate inequality measures

 From "Emma Samman" To Subject st: RE: Re: problems with using ineqdeco to calculate inequality measures Date Wed, 30 Apr 2003 21:28:01 +0100

```I am having this problem using data from the CASEN as well.
However, I already went through the 'zero' values and either changed
them to one (if I felt they were valid) or removed them from the
analysis. This doesn't seem to have solved the problem though.
Best wishes,
Emma

-----Original Message-----
From: owner-statalist@hsphsun2.harvard.edu
[mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Marcela
Perticara
Sent: Wednesday, April 30, 2003 4:56 PM
To: statalist@hsphsun2.harvard.edu
Subject: st: Re: problems with using ineqdeco to calculate inequality
measures

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
----------------------------------------------

------------------------------------------------------------------------
--
Professorial Lecturer, Georgetown University
Erasmo Escala 1835, Santiago (Chile)
Phone: 692-0267
Fax: 692-0303
----- 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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```