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From |
Maarten buis <maartenbuis@yahoo.co.uk> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: Egen for logit regression |

Date |
Wed, 7 Apr 2010 07:30:24 -0700 (PDT) |

--- On Wed, 7/4/10, muhammed abdul khalid wrote: > How do i test the effect on ethnicity IF all observations > doesn't have inheritances wealth? Do i introduce another > dummy say ''inheritance'', of which it equal to wealth>0 > at age 20? Or use egen command to create mean value of > wealth as a proxy of starting point? You would need to define what you mean exactly with inheritance, in particular does it include transfers from living parents to their kids (e.g. to start a business) or are you using a more conventional definition which would require that (often both) parents died. If you use the latter definition then your first solution would seem wrong: fortunately it is very common that the parents are still alive when the kids become 20. If you use the former definition, then I would consider these intergenerational transfers as an intervening mechanism: they partly explain why race influences wealth. In this case I would _not_ want to control for these transfers when estimating the effect of race. If we would control for these transfers, we would take away the part of the effect that we are pretty sure really exists (because we know and understand the mechanism) and are left with variation we can't explain. Anyhow, this is all academic since you appear to have no information on intergenerational transfers in your data. Hope this helps, Maarten -------------------------- Maarten L. Buis Institut fuer Soziologie Universitaet Tuebingen Wilhelmstrasse 36 72074 Tuebingen Germany http://www.maartenbuis.nl -------------------------- * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: Egen for logit regression***From:*muhammed abdul khalid <muhammed.abdulkhalid@gmail.com>

**References**:**st: Egen for logit regression***From:*muhammed abdul khalid <muhammed.abdulkhalid@gmail.com>

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