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RE: st: How to set a year index?


From   Nick Cox <[email protected]>
To   "'[email protected]'" <[email protected]>
Subject   RE: st: How to set a year index?
Date   Fri, 20 May 2011 15:58:57 +0100

The logic here is fine, but why do it this way? 

summarize price if year == 2005, meanonly 
gen price_index = price/r(mean)

Note how 

1. The middle macro is completely unnecessary. 

2. Although it will not usually bite, you are probably losing a smidgen of precision by using a local. 

3. Specifying -meanonly- is efficient if all you need is the mean. 

Small points indeed, but in computing the devil is often in the details. 

Nick 
[email protected] 

Oliver Jones

for example if you had a variable called price you could do

summarize price if year == 2005
local base_value = `r(mean)'
gen price_index = price/`base_value'


Am 20.05.2011 16:43, schrieb Barbara Engels:

> I have a time series from 1990 to 2010 and want to set the year 2005 as an index year (2500=100) so as to evaluate the other observations with reference to 2005. How can I do that with Stata commands?

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