SHAZAM Questions and Answers (Q&A) - RSS feedhttp://community.econometrics.com/questions/SHAZAM Econometrics, Statistics and Analytics Communityen<font color="white">Copyright <b>SHAZAM Analytics, 2018</b></font>Wed, 23 Apr 2014 02:36:20 +0000Estimating Divisia index for expenditure variableshttp://community.econometrics.com/question/500/estimating-divisia-index-for-expenditure-variables/Hi All,
I want to aggregate expenditure variables using a Divisia index (aggregate of labour, deprecation and other costs).
I saw some examples in the manual where the commands require price and quantity information like:
Index p1 q1 p2 q2 to estimate price index or
index q1 p1 q2 p2 to estimate quantity index
In my case I have cross-sectional data and the variables are expenses (there is no quantity in it) with some observation have a value of zero expenses.
how can I estimate the Divisia index? As I said, there are some observations which have zero value for some of the expenses. How do these zero values affect the estimation of the Divisia index?
Thanks for the help.
Sirak
SirakWed, 23 Apr 2014 02:36:20 +0000http://community.econometrics.com/question/500/