Re: st: Re: Factor analysis and dummy variables.

[adiallo5@worldbank.org]

Hi all,

I've tried the polychoric procedure this week-end.
Not only it is too long to produce final results (it takes
a whole day for each data set) but it is also skewed.
Not as much as the traditional Filmer-Pritchett method,
but skewed nonetheless. My distribution obtained is far
from the normal.

Whether to include or not education of head depends
really of the tastes of the analyst. I know some people who
used to include it. I do not usually.
Macro Inc. people who produce the DHS data also include
sometimes domestic presence as an asset variable.

I do not know what other stata users may think of this question.

Best regards.

Amadou.



                                                                                                                                           
                      Dale Larson                                                                                                          
                      <DWL@larsonglobal.com>           To:       statalist@hsphsun2.harvard.edu                                            
                      Sent by:                         cc:                                                                                 
                      owner-statalist@hsphsun2.        Subject:  Re: st: Re: Factor analysis and dummy variables.                          
                      harvard.edu                                                                                                          
                                                                                                                                           
                                                                                                                                           
                      12/11/2004 04:47 PM                                                                                                  
                      Please respond to                                                                                                    
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Friedrich,

Is not "human capital" an asset?  And is not education an indicator of the
size of that asset?

Whether human capital should be included in a wealth index depends on the
particular definition of wealth that is of interest.

Dale Larson

At 11:30 PM 12/10/2004, you wrote:
>Amadou,
>
>Education of the household head is not an asset and should not be
>included in the PCA. Please have a look at the literature to get a
>better understanding of the theory behind the wealth index.
>
>Friedrich Huebler
>
>--- adiallo5@worldbank.org wrote:
> > I am using DHS and I include all this variables (building, toilet,
> > water,...) along with pure assets variables.
> > But I end up with the same problem: a very bad distribution.
> >
> > I intend to put education of heads along with other alike variables
> > to see if I get better results.


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