Aggregation of Variable at Community level from Household data

[Ishwor Adhikari]

Hello there,
I am trying to study at community level. In the data 6,000 household are surveyed from 400 communities averaging 15 observations each. Can I construct some communities level variables from household level information for communities who have 15 household observations? Variables like literacy rate at communities, proportion of irrigated land in communities and a like?

[Maarten Buis]

Yes, if you think that those 15 observations are a good representation of those communities.