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