# Re: st: Decile regression using sqreg

 From "Leonor Saravia" To statalist@hsphsun2.harvard.edu Subject Re: st: Decile regression using sqreg Date Fri, 25 Apr 2008 12:44:22 -0400

```Maarten,

Leonor

2008/4/25, Maarten buis <maartenbuis@yahoo.co.uk>:
> --- Leonor Saravia <lmisaravia@gmail.com> wrote:
> > I understood that I'm having a problem with the interpretation of
> > the coefficients, because I can't understand what's the meaning of
> > each one of the coefficients obtained with this command.
> >
> > I'm working with some households surveys for latinamerican countries,
> > so the data I'm using has the next variables:
> >
> > household_identifier     income    food_expenditure
> > 123                               1000         800
> > 445                                2980        1500
> > 670                               500            250
> > .                                     .                 .
> > .                                     .                 .
> > .                                     .                 .
> > 870                              15200          14000
> >
> >
> > The model that I'd like to perform is this:
> >
> > income = a + b*(food_expenditure) + error
> >
> > And I need to compare the coefficients for each decil of income of
> > the population of each country, something like comparing the
> > coefficient for the food expenditure done by 10% of the poorest
> > population and the richest 10% of the population.
> >
> > I think that the quantile regression is the way to do this, using the
> > "sqreg" command, am I wrong?
> >
> > That's why I thought that I need 10 regressions instead of 9, because
> > I need to compare the coefficients for each one of the 10th parts of
> > the population.
>
> In your model you are thinking that food expenditure causes income, I
> would say that it is the other way round.
>
> Anyhow, you are probably looking for something like this:
>
> *-------- begin example ------------
> sysuse nlsw88, clear
> egen decile = cut(wage), group(10)
> *--------- end example -------------
> (For more on how to use examples I sent to the Statalist, see
> http://home.fsw.vu.nl/m.buis/stata/exampleFAQ.html )
>
> Here you see the mean grade (in your case food expenditure) for the 10%
> poorest (coded 0), between 10-20% poorest (coded 1), etc.
>
> Hope this helps,
> Maarten
>
> -----------------------------------------
> Maarten L. Buis
> Department of Social Research Methodology
> Vrije Universiteit Amsterdam
> Boelelaan 1081
> 1081 HV Amsterdam
> The Netherlands
>
> Buitenveldertselaan 3 (Metropolitan), room Z434
>
> +31 20 5986715
>
> http://home.fsw.vu.nl/m.buis/
> -----------------------------------------
>
>
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```