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Re: st: need information about decomposition of the variance of logarithms


From   Maarten buis <[email protected]>
To   [email protected]
Subject   Re: st: need information about decomposition of the variance of logarithms
Date   Thu, 23 Feb 2006 04:21:08 +0000 (GMT)

Yukimitsu Nishimura:
People take the log of an income variable to make it more like a normal distribution, which is one
of the assumptions underlying regression and ANOVA if income is your dependent variable. What you
do is you just create a new variable, lninc, containing the natural logarithm of income by -gen
lninc = ln(inc)- (assuming that your income variable is called inc). Than just use lninc instead
of inc. 

What do you  mean by decomposition of variances? It reminds me of two things: most literally it
reminds me of ANOVA, but also of Blinder-Oaxaca decomposition (which is very common when comparing
wages between different groups). If you want to do ANOVA, just type -help anova- or -help oneway-,
if you want to do a Bliner-Oaxaca decomposition type -findit oaxaca- which will point to various
user writen programs to do the decomposition.

HTH,
Maarten

---(B <[email protected]> wrote:
> I am looking for a stata module to compute variance of logarithms on 
> personal income.and to compute this inequality decompositions by subgroups.
> Or please show me how to do.


-----------------------------------------
between 1/2/2006 and 31/3/2006 I will be
visiting the UCLA, during this time the
best way to reach me is by email

Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands

visiting adress:
Buitenveldertselaan 3 (Metropolitan), room Z214

+31 20 5986715

http://home.fsw.vu.nl/m.buis/
-----------------------------------------


		
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