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

 From "Marcela Perticara" <[email protected]> To <[email protected]> Subject st: Re: problems with using ineqdeco to calculate inequality measures Date Wed, 30 Apr 2003 11:56:25 -0400

```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 won�t consider those individuals with zero
income, these zero incomes cause trouble in the estimation.
I haven�t 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" <[email protected]>
To: <[email protected]>
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
>
>
> *
> *   For searches and help try:
> *   http://www.stata.com/support/faqs/res/findit.html
> *   http://www.stata.com/support/statalist/faq
> *   http://www.ats.ucla.edu/stat/stata/

*
*   For searches and help try:
*   http://www.stata.com/support/faqs/res/findit.html
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/
```

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