Hi all,
I am trying to apply the Shapley decomposition method to household consumption data.
I am wondering if there is a short cut to do the following subroutine.
Consumption data is x, and assume there are 4 explanatory variables, var1-var4.
I have performed the following:
regress x var1 var2 var3 var4
saved the betas as B1, B2 etc. upto B5 (coeff on the constant) and generated them as variables alongside var1 var2 etc.
I next need to generate means of variables, vbar1, vbar2, and generate new consumption variables x1 x2 x3 x4 as follows.
Using a loop,
local i=$j/*where $j is total no of vars, that is 4*/
while `i'>=1{
qui sum var`i'
qui gen vbar`i'=r(mean)
qui gen XXXXXX/*see below*/
local i =`i'-1
}
The XXXXXX part has to read as follows if i=4
x4=exp((B1*var1)+(B2*var2)+(B3*var3)+(B4*vbar4) +(B($j+1))/*constant*/
if i=3, then XXXX must read,
x3=exp((B1*var1)+(B2*var2)+(B3*vbar3)+(B4*var4) +(B($j+1))/*constant*/
if i=2, then XXXXX goes,
x2=exp((B1*var1)+(B2*vbar2)+(B3*var3)+(B4*var4) +(B($j+1))/*constant*/
etc.
Can anyone please suggest how I may write an expression for XXXXX which includes all the above possibilities, depending on the value that `i' takes and even if I have 25 variables?
Thanks so much,
Ramani
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