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From |
Stas Kolenikov <skolenik@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: RE: Multi-level modeling, PCA and wealth scores |

Date |
Mon, 22 Aug 2011 15:35:44 -0500 |

On Mon, Aug 22, 2011 at 2:28 PM, Nanlesta Pilgrim <nanlesta@gmail.com> wrote: > A colleague of mine asked for my help on the following and would be > most grateful for any recommendations you may offer. > > "I have a question regarding creation of wealth measures. We are > trying to create a community level measure of wealth to be used in a > multi-level model. I have used the pca command (with household assets) > to create a pca score for each household. Now, I want to weight that > score at the household level and then just determine the mean > household factor load score for each county and save that value for > every household by county. Is that possible to do?- Is that even the > right thing to do for a multi-level model? Or do I just input the > weighted household level value and the multilevel commands > automatically generates a county-level score for this variable?" I think you should be more explicit at how these scores be formed by the software (see http://www.newciv.org/pic/nl/artpic/10/1953/SidneyHarris_MiracleWeb.jpg). If you DO know that the software will create the scores for you, then the next step is to figure out if these are the right scores (see our paper on this, doi:10.1111/j.1475-4991.2008.00309.x, and the earlier expanded working paper versions of it). If you don't know, assume the software won't create the scores. I'd suggest you run analysis separately by country, as there will be mismatch in the available variables between different countries. Then you could pull out the scores, but then you have a problem of measurement error that would bias the coefficients toward zero. The best solution would be to adopt a multilevel structural equation modeling framework for this, which means figuring out GLLAMM. -- Stas Kolenikov, also found at http://stas.kolenikov.name Small print: I use this email account for mailing lists only. * * 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/

**References**:**st: RE: Multi-level modeling, PCA and wealth scores***From:*Nanlesta Pilgrim <nanlesta@gmail.com>

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