What is the difference between factor loading and factor score generated by PCA. After computation of factor scores (not loading) how can i use it to generate final index.
With thanks,
Parth
I'm not sure you necessarily have to use PCA....
try some other measures you might be able to construct from your data. For example look at the Demography and Health Surveys (DHS) wealth index; of you have international you can look at the International Wealth Index (the IWI); or the World Bank's household and consumption indexes; or the GINI coefficient -- as examples.
Since you don't describe your data (individual, state, national) its difficult to give you any precise options.
Dear, Prof. Michael thank you very much for briefing about calculating wealth index. I am using the same variable and coding given by Filmer and Pritchett, 2001 for calculating Wealth index. My projects requires to create the wealth index adopted by the DHS and National Family Health Survey, India.
In short, I have 21 variables for 642 HHs.
For your convenience I am also attaching the reference documents which have described the method.
Looking forward to hear from you soon.
Thanks a lot for your time and consideration!!
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