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Re: st: Re: Factor analysis and dummy variables.


From   Dale Larson <[email protected]>
To   [email protected]
Subject   Re: st: Re: Factor analysis and dummy variables.
Date   Sat, 11 Dec 2004 16:47:02 -0500

Friedrich,

Is not "human capital" an asset? And is not education an indicator of the size of that asset?

Whether human capital should be included in a wealth index depends on the particular definition of wealth that is of interest.

Dale Larson

At 11:30 PM 12/10/2004, you wrote:

Amadou,

Education of the household head is not an asset and should not be
included in the PCA. Please have a look at the literature to get a
better understanding of the theory behind the wealth index.

Friedrich Huebler

--- [email protected] wrote:
> I am using DHS and I include all this variables (building, toilet,
> water,...) along with pure assets variables.
> But I end up with the same problem: a very bad distribution.
>
> I intend to put education of heads along with other alike variables
> to see if I get better results.

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