How to calculate Concentration Index and Fairlie’s decomposition method in STATA

[Jivan Biradar]

Dear All,
I am new on this forum. Recently, I have started using STATA for my research. My problem is, How to calculate Concentration Index and Fairlie’s decomposition method in STATA?
I want to understand rural urban difference in use of plastic money. My dependent variable is use of plastic money and independent variables are age, gender, monthly consumer expenditure, education, place of location (i.e. rural and urban).

Please help me.

[Stephen Jenkins]

-ssc describe fairlie- Who knows what you mean by "concentration index" (you provide no reference -- see Forum FAQ about this)? In any case, perhaps -search herfindahl-

[Jivan Biradar]

Hi Stephen,
I am trying to find out rural & urban inequality in access and use of credit and debit cards. In this study there are around 10 socioeconomic, financial and regional variables which are independent variable (all are binary variables). Dependent variable is credit and debit card access / use (this is also binary variable). I want to use logistic regression, concentration index which will be decomposed to find out the share of the major contributory factors. In this connection, I want to know how to do concentration index then how to use decomposition method in STATA.
I am able to do with logistic regression but not able to do concentration index and decomposition method.
Please help me.

Thank you.

[Nick Cox]

You miss the main point made by Stephen Jenkins Many measures have been called concentration indexes. Indeed, sometimes the same measures have been labelled measures of inequality, diversity and so on. Without a clear reference to which you have in mind, it is too difficult to know what you have in mind.

[Jivan Biradar]

Thank you Nick Cox for your suggestion.
I want to use concentration index for measures of rural and urban inequality in 'access' and 'use' of credit and debit cards.

[Jivan Biradar]

Thank you Nick Cox for your suggestion.
I want to use concentration index for measures of rural and urban inequality in 'access' and 'use' of credit and debit cards.

[Nick Cox]

Sorry, but you have not answered my question, which was a rewording of that by Stephen Jenkins in #2, so I can’t make any suggestions beyond taking the formula and writing code yourself.

[Dung Le]

Thank you Nick Cox for your suggestion.
I want to use concentration index for measures of rural and urban inequality in 'access' and 'use' of credit and debit cards.

Hi Jivan,

If you want to learn about methods in health inequalities, you are encouraged to read the following book, which also contains data examples and Stata code so that you can play around: https://openknowledge.worldbank.org/...d-fbde5419bc2a

If you want to compute concentration indices as indicated in the book above, you should go for conindex, an user-witten command from SSC.

Hope this helps.