> I have an income variable grouped into 5 categories (Q1 Q2 Q3 Q4 Q5) ie
> from poorest to richest and I want to compute its covariance with the
> following vector:
>
> | 0.1 |
> | 0.3 |
> | 0.5 |
> X = | 0.7 |
> | 0.9 |
>
> How to do that into stata?
> I would appreciate any help.
It looks like you are trying to estimate the Gini coefficient. This would
be a quite risky thing to do with the quintile data, I would argue. Kit
Baum posted a solution, but you should keep in mind when you want to
interpret this data that computing such covariance understates the Gini
coefficient quite notably: just draw the Lorenz curve for the data with
five levels of income corresponding to the discrete distribution you are
dealing with.
--- Stas Kolenikov
-- Ph.D. student in Statistics at UNC-Chapel Hill
- http://www.komkon.org/~tacik/ -- [email protected]
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