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# st: RE: Price Index

 From Nick Cox <[email protected]> To "'[email protected]'" <[email protected]> Subject st: RE: Price Index Date Tue, 5 Apr 2011 18:26:40 +0100

```Let me outline solutions for two situations.

1. Suppose you have a single item whose price you are monitoring.

Then

su price if time == 495

gen priceindex = 100 * price / r(mean)

I am clearly assuming that you want 100 as your base.

2. However, I imagine you would not be asking if that was the problem. Your question implies something like a panel structure.

Then you could reach for something more like

egen priceindex = total(price / (time == 495)), by(panelid)

or

egen priceindex = total(price * (time == 495)), by(panelid)

followed by

replace priceindex = 100 * price / priceindex

The logic is that -time- of 495 occurs just once in each panel. You should check that.

You could squeeze that into one command, no doubt, but I guess with some loss of clarity.

Nick
[email protected]

A.Silva

I need to create a price index using a base price.
How can I indicate to Stata to use always the same observation as a base (in my example time==495)?
For example, my variables are:
time price
495 20
496 22
497 23

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