Can anyone explain how I can calculate the stone price index for food items using stata?

Kanchana Wickramasinghe @Kanchana-Wickramasinghe

29 December 2014 1 854 Report

I am trying to assess the demand for selected food items using the LA/AIDS model. There are more than 1.0 food items consumed by the household. I would like to find out how the Stone Price index can be calculated using the stata software.

Manoj Thibbotuwawa

"R" software is much easier than "STATA" in demand estimation and most importantly it is free. http://www.r-project.org/

There is a built in code in the Package ‘micEconAids’ in R.

http://cran.r-project.org/web/packages/micEconAids/micEconAids.pdf

Suppose you have 4 commodities. Then the command for Stone price index would be like,

aidsPx( "S", c( "pFood1", "pFood2", "pFood3", "pFood4" ), nameData, c( "wFood1", "wFood2", "wFood3", "wFood4" ) )

where, S refers Stone price index, pFood1-pFood4 are the prices for the 4 commodities, nameData is the name of your data file and wFood1-wFood4 are budget shares of 4 commodities.

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